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Partnership

Accountancy

answered on 18-Aug-20 13:29

In page 2.94, Illustration 8 while finding purchase consideration, all the assets and liabilities are taken over rite so why can't we find using net assets approach like all assets - liabilites

latest answer

Purchase consideration is the consideration received on selling the company. The Net Assets approach is taken when the information about the purchase consideration is not available. But here, in this question, it is clearly stated that Prabhu & Co. are receiving 25,000 equity shares of Rs.10 each at a premium of Rs.2 per share. So since the amount of purchase consideration is directly given, Net Assets approach is not considered.

Swathi Krishna

Swathi Krishna

CA Final

8K+

1

595

Redemption of Preference Shares

Accountancy

answered on 19-Aug-20 21:11

Can we follow any sequence of Journal Entries since date is normally not given... like booking liability of PS Holders in first entry and paying them in Last entry ?

latest answer

Preference share capital account dr To Preference shareholders account cr ( being booking liability ) Preference shareholders account dr Bank account cr ( being payment to PS holder)

J J

J J

CA Final

180

3

533

AS 7

Accountancy

answered on 18-Aug-20 13:08

What is meant by Retentions?

latest answer

Contract revenue shall include initial amount agreed on the contract, retention money, claims, incentive payments and variations, if any. Retentions are amounts of progress billings which are not paid until the satisfaction of conditions specified in the contract for the payment of such amounts or until defects have been rectified. Progress billings are amounts billed for work performed on a contract whether or not they have been paid by the customer. Once the conditions are satisfied and defects are rectified (if any), the retention amount is paid off.

Gomathi K

Gomathi K

CA Final

40K+

1

512

Financial Statement

Accountancy

answered on 18-Aug-20 22:57

Preliminary expenses if given in adjustment , what will be the impact in the financial statement ?

latest answer

Thank you ma'am

Srini Sriram

Srini Sriram

CA Final

4K+

4

484

Accounting standards

Accountancy

answered on 20-Aug-20 14:38

I need SMALL AND MEDIUM SECTOR ENTERPRISES Disclosures requirement sample of Accounting Standard 1,2,9,29 .. Can anyone please provide...

latest answer

Thank you sir ð???ð???

Venkateshwara Prabhu

Venkateshwara Prabhu

CA Inter

16K+

3

620

RPS

Accountancy

answered on 17-Aug-20 06:51

In redemption of preference shares, to redeem the shares he opt to issue shares at premium and collect money.. Can I use the premium money collected at issue of shares to redeem the preference shares

latest answer

As per Section 52(2) of the Companies Act, 2013, Securities Premium Account may be used for the purpose mentioned therein like, issue of bonus shares, writing off preliminary expenses, buy back of shares, etc The balance can also be used to provide for the premium that is payable on the redemption of debentures or of preference shares of the company

Shalini Shalu

Shalini Shalu

CMA Inter

300

1

598

Unable to find Notes

Accountancy

answered on 14-Aug-20 12:09

I am unable to find specific problem notes in 1fin app, which I previously used to open and download in Indigo learn app. For example, I am unable to find Notes for AS 4 problems. Where is the provision provided in 1fin app?

latest answer

Thank you sir.

niranjana senthilarasu

niranjana senthilarasu

CA Inter

680

2

586

Issu of share

Accountancy

answered on 12-Sep-20 11:26

Q4 in attachment

latest answer

Building a/c .... Dr 10,00,000 To Bank a/c. 1,00,000 To Equity share capital a/c 7,50,000 To Securities premium a/c 1,50,000 Here balance amount (10,00,000 - 1,00,000) will be raised by equity shares issued at premium of Rs 2 i.e,, Rs 12 Hence (9lac/12 = 75,000 shares) for which nominal value should be credited to equity share capital and premium should be credited to Securities premium.

sushama shedekar

sushama shedekar

CA Foundation

3K+

2

570

Boe

Accountancy

answered on 25-Aug-20 15:40

In boe drawer B/R can be transferred to endorsee Like that only the drawee can transferred his B/P to any person from where he want to receive the money from? So by this way in the Bill's of exchange there can be four parties know not only three

latest answer

If A draws a bill on B for Rs 5000 so that on the due date of the bill A can present the bill to B and encash 5000 Here in this case Drawer is A( who drawn the bill). Drawer is B who accepted the bill. Payee(beneficiary) is A( as he receives the payment finally) If A endorses the bill to C(creditor for A) for the amount payable to C. Then the Drawer is A( drawer of bill doesn't change). Drawer is B (acceptor of bill does not change). Payee is C ( beneficiary) receiver of Rs 5000. Here payee is also called holder of the bill. Finally there are only 3 parties.

THARUN KUMAR EKAMBARAM

THARUN KUMAR EKAMBARAM

CA Foundation

18K+

3

627

Overstatement of sales

Accountancy

answered on 12-Aug-20 17:54

What happens to net profit when there is overstatement of sales?

latest answer

Please mark the MCQ correction by clicking on top right !. We shall correct it immediately

Anirudh Gupta

Anirudh Gupta

CA Inter

3K+

3

548