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In Amalgamation, can Goodwill and Capotal Reserve be Netted off?
Accountancy
answered on 11-Nov-20 17:08
If two companies were amalgamated to form a new company and the amalgamation was in the nature of purchase and the result of purchasing one company was goodwill and that of another was Capital Reserve. So, as per AS 14, can these resultant goodwill and Capital Reserve be netted off in the transferee's books? like this author has done in the image below
latest answer
Thank you
Kumarjit Dey
CA Inter
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938
An imp Question from Internal Reconstruction
Accountancy
answered on 11-Nov-20 13:04
Can you please explain why they calculated Profit on revaluation this way? ( 1st pic) (Q in 2nd pic) I have also solved in a way it felt correct. Please tell me why my calculation is wrong. This is one of the most important sums from this easy chapter, from which If questions come I dont want to lose marks.
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Yes..tq for ur understanding
Kumarjit Dey
CA Inter
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627
Accounting standards
Accountancy
answered on 10-Nov-20 17:43
Is AS 11,13 covered in respective chapters or should be seen in separate classes provided
latest answer
Ok sir Thank you
Lakshmipathirao Tantravahi
CA Inter
★ 0
2
469
Applicability of AS
Accountancy
answered on 10-Nov-20 15:48
I have watched your video on applicability of AS part one In that video the non corporate entities are classified into 3 Lvl 1,2 and 3 In lvl 1 the first criteria was those entities whose equity or debt securities are listed or in the process of listing....etc.. My doubt is that can a non corporate entity issue equity or debt securities and list them.. Kindly reply
latest answer
Ok
PKM Calicut
CA Inter
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2
520
Branch Accounting
Accountancy
answered on 10-Nov-20 18:12
Hi, in illustration 10- Q1. Is 1200 opening stock reserve of branch or ho? Q2. Why are we debiting closing stock reserve in HO column and not BRANCH column when we are calculating closing stock reserve on BRANCH closing balance that is 9560.
latest answer
Branch accounting is done at cost to branch. The excess profit which is generated because goods are invoiced at a higher price, it is to be removed from HO as it is not yet earned.
Karan Chellani
CA Inter
★ 0
1
570
Amalgamation related problem
Accountancy
answered on 09-Nov-20 09:43
Sir in this do we HAVE to settle debentures and loan from A through bank account or we can close them through realisation account?
latest answer
You can close through realisation account as well.
Kumarjit Dey
CA Inter
★ 4K+
1
577
Doubt
Accountancy
answered on 12-Nov-20 12:43
Look a the question image where I tick marked my one and only doubt is that when bad debt is written why we did not deduct from trade receivables that 5000 amt as also no provision is there
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OK sir
Nilesh Malviya
CA Inter
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6
600
AS 29 query
Accountancy
answered on 08-Nov-20 12:45
Sir, we know that as per AS 29 "obligation" is a duty or responsibility to act in a certain way arising from binding contracts, STATUTE, business practices or customs to maintain good relationship. The author of this scanner writes that "even a legal requirement does not require the company to make a provision. Doesnt the author's answer contrast with AS 29's definition? Please share your opinion, Sir.
latest answer
Yes as per AS 29 "present" refers to an obligation which is IN EXISTENCE AS BS DATE and it is PROBABLE (more likely than not) based on the evidence available on the balance sheet date. So yes, you and author are correct. I never doubt it the author in the first place but had to clarify my doubt, hence asked. Thanks for clarifying.
Kumarjit Dey
CA Inter
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526
Accounting
Accountancy
answered on 08-Nov-20 11:48
Yes
latest answer
Elaborate your query
Gowri Pagadala
CMA Inter
★ 0
1
493
Partnership accounts
Accountancy
answered on 12-Nov-20 09:52
In mtp oct 20 or rtp may 20 . Why the amount to be drawn was calculated in that way any logic behind it
latest answer
Thanks
Satya Shashank
CA Inter
★ 13K+
24
544