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Redemption of Preference Shares

Accountancy

answered on 27-Apr-21 10:21

What are reasons (or) Purpose of Issuing Redeemable Preference Shares?

latest answer

A company may issue redeemable preference shares because of the following: 1. It is a proper way of raising finance in a dull primary market. 2. A company may face difficulty in raising share capital, as its shares are not traded on the stock exchange. Potential investors, hesitate in putting money into shares that cannot easily be sold, may be encouraged to invest if the shares are redeemable by the company. 3. The preference shares may be redeemed when there is a surplus of capital and the surplus funds cannot be utilised in the business for profitable use. 4. No dividend is required to be paid, if there is loss or no profit, whereas, interest is payable on debentures or loans even in case of loss.

Mahi Yadav

Mahi Yadav

CA Inter

0

1

633

Partnership Deed.

Accountancy

answered on 29-Apr-21 12:04

In connection with the admission of a new partner in a firm, the partners are writing their deed for the first time. Since the deed is preparing after 6 years of commencement of business, how could mention the clauses describing the futurity of the firm? Is there any problem preparing the deed of an existing firm in a newly attested deed? Is there any way we can change the terms into past tense?

latest answer

Please consult a practicing CA with expertise in partnership - we do not provide consultancy services

Balamurali Unnithan M S

Balamurali Unnithan M S

CA Inter

3K+

4

696

AS 10

Accountancy

answered on 27-Apr-21 08:33

If Revaluation model is followed for some class of assets, whether cost basis model can be followed for remaining class of assets?

latest answer

An accounting policy must be followed for entire class of assets

Nivedha Balaji

Nivedha Balaji

CA Final

9K+

1

699

AS 14 can't find

Accountancy

answered on 26-Apr-21 20:05

Sir where is AS 14? I could not find Please help me..

latest answer

Its with amalgamation

Sai Teja

Sai Teja

CA Final

14K+

1

609

Redemption of premium amount

Accountancy

answered on 27-Apr-21 11:30

Can we cancel off the premium amount from securities premium account or only general reserve Because in the icai book it was cancelled from general reserve

latest answer

Okay thank you

akshaya polisetty

akshaya polisetty

CA Inter

510

4

795

Depreciation

Accountancy

answered on 28-Apr-21 17:57

Changing method

latest answer

This is the answer to the above question

Jyoti Sehgal

Jyoti Sehgal

CA Foundation

0

2

815

Departmental account q4 study material new syllabus p.no12.29

Accountancy

answered on 26-Apr-21 19:05

ii memorandum stock account for the department a at the selling price iii. Memorandum departmental markup account I need explainatiom on this mark up mark down Why 25% on opening balance purchases and then

latest answer

Yes, what in that?

Sultana Sultana

Sultana Sultana

CA Inter

245

3

701

Overview of account standard

Accountancy

answered on 26-Apr-21 21:42

Gross margin formula

latest answer

Tq u

Sandhya K

Sandhya K

CA Inter

5

2

681

profit and loss pre and post Incorporation

Accountancy

answered on 26-Apr-21 10:33

iii) Bad debts treatment(With reason)

latest answer

It is allocated on the basis of Sales Ratio as it is variable expense linked with turnover.

Mahi Yadav

Mahi Yadav

CA Inter

0

1

725

Profit or loss pre and post incorportion

Accountancy

answered on 25-Apr-21 19:39

How to calculate Sales ratio simply?

latest answer

Follow this method..

Mahi Yadav

Mahi Yadav

CA Inter

0

1

611