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Profit prior to incorporation

Accountancy

answered on 25-Jan-21 18:32

In this chapter, we usually come across cases when a company takes over a firm or a sole proprietorship. What about a company taking over another company? Can there be profit prior to incorporation in this case?

latest answer

That is a case of Merger/Amalgamation. You will learn this in advanced accounting.

Aman Mahajan

Aman Mahajan

CA Final

19K+

1

496

Doubt

Accountancy

answered on 25-Jan-21 20:20

I have a doubt in below screenshots in partners capital account on debit side from where 25,000 is getting from??

latest answer

Sir is it possible to take 4,40,000 directly

sai t

sai t

CA Foundation

2K+

7

509

Propritorship

Accountancy

answered on 28-Jan-21 09:47

Preparing financials of proprietorship , last year its a partneship firm by constitution , how adjust the capital account & current account closing balances shown in last year balancesheet ?

latest answer

There will be some arrangement/agreement between the partners as to how it will be dissolved and converted.

Balamurali Unnithan M S

Balamurali Unnithan M S

CA Inter

3K+

9

543

Allocation of pre and post incorporation expense

Accountancy

answered on 23-Jan-21 18:47

Sir told that any expense for which the base of allocation is not certain must be allocated in time ration. Whatâ??s an example of such an expense whose allocation is not certain?

latest answer

Staff welfare expenses. The expenses may not be fixed per month.

Aman Mahajan

Aman Mahajan

CA Final

19K+

1

516

Fire insurance

Accountancy

answered on 26-Jan-21 15:51

How less expenses is less premium for insurance?? Pls explain

latest answer

Since insurance for loss of profit also covers standing charges, lower expenses declared means lower permium

Reetikaa R

Reetikaa R

CA Final

7K+

7

521

Doubt

Accountancy

answered on 23-Jan-21 10:29

Can any one tell me how good will is calculated and how it was shared to partners for the given problem

latest answer

Goodwill appearing in balance sheet is written off as it should not appear in the books of new firm Goodwill in adjustments is passed through partner's capital account (1,00,000x1/5 = 20,000)

sai t

sai t

CA Foundation

2K+

1

539

Exact question came in accounts paper today

Accountancy

answered on 21-Jan-21 19:39

In today's account paper, companies a/c question came exactly with some numerical changes, what our satya raghu sir taught us in illustrations.

latest answer

It was an emoji... But forgot that app doesn't support emojis...

Meda Jeevansai

Meda Jeevansai

CA Final

21K+

3

571

Indigolearn is the BOON to Budding CA's!

Accountancy

answered on 21-Jan-21 21:28

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latest answer

Thank you for your blessings sir!

Meda Jeevansai

Meda Jeevansai

CA Final

21K+

6

504

CFS

Accountancy

answered on 21-Jan-21 13:44

What are level 1 2 and 3 companies

latest answer

Enterprises are classified in different levels and labelled as level I, level II, level III companies. On the basis of this classification, accounting standards are applicable to the companies

Priyanka Udeshi

Priyanka Udeshi

CFA L1

14K+

2

578

Financial Statements of Companies

Accountancy

answered on 21-Jan-21 09:32

where to disclose "Preliminary Expense" if given in 1) Trail balance 2) P&L account ?

latest answer

Preliminary expenses are not shown in balance sheet. They are written off.

Sai Krishna

Sai Krishna

CA Final

9K+

2

554