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Reserve

Accountancy

answered on 23-May-21 09:50

In memorandum of reserve calculations in admission of new partner for balance sheet reserve what is the treatment.

latest answer

General reserve is credited to old partners in old profit sharing ratio because it is the profit earned by them and they are worthy of it

Shreesha .T.u

Shreesha .T.u

CA Foundation

2K+

3

792

AS 20

Accountancy

answered on 22-May-21 16:22

Please clarify what and how this 4/3 came into picture, though they have given an explanation beneath i could not get it

latest answer

For every 3 shares you had, you got one share extra as bonus. Suppose, you are having 3 shares. Company gave bonus of 1 share. It means now you are having 4 shares (original 3 + bonus 1) Hence, while calculating EPS, we have to take 4/3

Venkatesh Rathinam

Venkatesh Rathinam

CA Final

15K+

1

662

Journal

Accountancy

answered on 22-May-21 15:48

Sir can you explain 2 nd question

latest answer

Understood sir

siva chaitanya

siva chaitanya

CA Final

13K+

5

686

Underlined sentence

Accountancy

answered on 21-May-21 13:33

How The interest of outsiders is not affected if there is no reduction in shareholders fund

latest answer

At the time of winding up, outsiders are paid first out of the asset proceeds. It's only then the remaining amount is distributed to shareholders. Example, at the lime of lending, outsider saw, okay this company has 10 lakh of assets and 5 lakh of equity and 5 lakh of preference share capital, so I will lend 3 lakh, as even if losses are made, I will get the amount as there is sufficient buffer. Now if say preference shares are redeemed, pool of funds gets reduced, security cover for lender will also fall.

Gauri Shete

Gauri Shete

CA Final

5K+

5

657

Cash flow statement

Accountancy

answered on 21-May-21 11:56

How to treat the tax item in case of net profit before tax and after tax??

latest answer

Thank you so much sir for clearing my doubt.

Sainisha Ramesh

Sainisha Ramesh

CA Inter

200

4

668

Retirement Of partner - illustration 3

Accountancy

answered on 27-May-21 19:52

Here, the goodwill I the balance sheet is written off in 5:4:3 ratio, and not 3:4:4 ratio, why is that?

latest answer

May be some mistake in the material. The actual ratio will be 3:4:4.

Siddharth Kulkarni

Siddharth Kulkarni

CA Final

28K+

7

971

Final accounts

Accountancy

answered on 22-May-21 16:32

Sir it is clearly said that net purchases is transferred to trading account Why do we again show in trading account As to purchases less returns

latest answer

Thank you mam

Prasanth Kumar

Prasanth Kumar

CA Inter

13K+

9

727

Branch Accounts - Debtors Method Illustration -3

Accountancy

answered on 17-May-21 10:29

Goods sent we recorded as 2,40,000 Loading we have reduced as 40000 ( which is 20%) Goods in Transit we have recorded as 20000 in closing stock And we debited Rs 8000/- in closing stock loading ( Stock + Closing stock) Since we have already credited loading of 40000/- why should we again debit loading for the value of goods in transit

latest answer

Yes exactly :)

sai krishna teja

sai krishna teja

CA Inter

940

3

958

Depreciation

Accountancy

answered on 16-May-21 09:42

Is revaluation of assets part of the syllabus?

latest answer

Its the Syllabus

Siddharth Kulkarni

Siddharth Kulkarni

CA Final

28K+

2

757

Redemption of Debentures

Accountancy

answered on 15-May-21 11:37

Sir, here in icai material, the interest on debentures have not been considered, although in class sir have included it in the answer, i also feel that interest must be considered, will it be considered correct if we account for interest aswell?

latest answer

Can assume either ways. In the class I took the part of interest not paid as at times students may forget to adjust for it.

TarunGopi Katragadda

TarunGopi Katragadda

CA Inter

135

2

791