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Statutory reserves

Accountancy

answered on 03-Apr-21 12:44

What is a statutory reserve and why cannot we create statutory reserves when two companies are amalgamated?

latest answer

Amalgamation adjustment reserve is debited to bring in the statutory reserves of the transferor company. There is no creation of statutory reserves, it is transferred as per the rule

Rithani R.C

Rithani R.C

CA Inter

4K+

3

854

ACCOUNTING CONCEPTS

Accountancy

answered on 01-Apr-21 11:50

TYPE OF CONCEPTS

latest answer

1. Business Entity Concept 2. Money Measurement Concept 3. Dual Aspect Concept 4. Going Concern Concept 5. Accounting Period Concept 6. Cost Concept 7. The Matching Concept 8. Accrual Concept 9. Realization Concept

KARTHIKEYAN M

KARTHIKEYAN M

CA Inter

12K+

1

479

Underwritting

Accountancy

answered on 01-Apr-21 14:19

Sir what is the meaning of this sentence given in the below attachment? Whether benefit of underwriting given or not? Whether firm underwriting includes in or not? Please explain it

latest answer

Yes, correct

Sajan Gangadharan

Sajan Gangadharan

CA Final

9K+

4

816

Accounting query

Accountancy

answered on 01-Apr-21 19:08

What entry should i made to increase sales by rs.4032 without increasing debtors and cash in hand should also be increased by that amount and closing stock should also decrease in tally??

latest answer

Assume that cost sales 4000 and profit is 42 - 1) 4000 increase in sales, 4000 reduced in closing stock and 32 will be shown in profit. 2) in balance sheet : Asset - closing stock (4000) and cash / debtors +4032. Liability- profit +32 The balance sheet talliedð???ð???

Aadip Mondal

Aadip Mondal

CA Inter

4K+

2

522

Redemption of debentures

Accountancy

answered on 31-Mar-21 15:55

In this interest on debentures is missing right??

latest answer

Yes you have to write assumption for that

GOKULA LAKSHMI

GOKULA LAKSHMI

CA Final

21K+

4

564

Redemption of preference shares

Accountancy

answered on 30-Mar-21 17:55

Nominal value is 37500 but they are reducing only 31250..y it is plz explain (refer bk pgno.7.13 illu -5)

latest answer

This is the original question as per earlier material.

GOKULA LAKSHMI

GOKULA LAKSHMI

CA Final

21K+

6

519

REDEMPTION OF PREFERENCE SHARES

Accountancy

answered on 31-Mar-21 13:06

Issue of equity shares at premium for redeeming preference shares, whether the premium amount will be used for repaying

latest answer

For CRR we take FV. For cash in hand we take full amount.

GOKULA LAKSHMI

GOKULA LAKSHMI

CA Final

21K+

10

663

Buyback

Accountancy

answered on 30-Mar-21 11:01

Why is Other Current Liabilities considered while calculation of debt? Please explain this part

latest answer

Debt for the purpose of Debt-equity ratio test, includes both long-term and short-term debt

Priyanka Udeshi

Priyanka Udeshi

CFA L1

14K+

1

591

ESOP

Accountancy

answered on 30-Mar-21 10:51

In this question why only entries for exercise period is passed Shouldn't we pass entry on 31.3.X1 as the year end is before the excercise period? Please explain this sum

latest answer

The question is only asking for journal entries for the year ended 31.3.20X2

Priyanka Udeshi

Priyanka Udeshi

CFA L1

14K+

1

905

cash flow

Accountancy

answered on 29-Mar-21 19:33

when to use direct and indirect method in cash flow ? how to differentiate

latest answer

thank you

Prasanna Venkatesan

Prasanna Venkatesan

CA Final

3K+

3

541