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Amalgamation and shareholder's worth

Accountancy

answered on 13-Mar-24 13:48

Sir while studying amalgamation we have understood that equity or shareholder's worth is calculated by subtracting liabilities from assets, which denotes the amount shareholders earned throughtout they year and deserve while exiting the company. Now doubt is, when we listen that shareholder's worth has increased for whatever reason (like share prices in stock market have increased or profits have increased or both or for any other reason) the lia.side of balance sheet will increase but when SH's worth increase, how do they increase the corresponding assets in real life? Let's say stock prices have risen manifold and gone from ₹10 to ₹80, now how will asset side increase? Cash won't increase ofcourse BCz money won't come in bank by increase in share prices in stock market, so how exactly assets will increase?

latest answer

When you refer shark tank, the increase is in valuation of the company. Valuation is from market point of view. Net worth is from balance sheet point of view.

Garima Bhargava

Garima Bhargava

CA Inter

185

3

299

Borrowing cost illustration 7

Accountancy

answered on 07-Mar-24 08:52

Interst till completion is 18 lakhs.. int till mar is 25 laksh .. only the diff will be charged off to pnl whyyyy 25 lakhs to pnl

latest answer

ONly 7 lacs will be expensed

MONIKAA RAMESHKUMAR

MONIKAA RAMESHKUMAR

CA Inter

710

1

127

Borrowing cost

Accountancy

answered on 10-Mar-24 19:05

In illustration 2 book pg no 5.119 is the same method of this problem .. but slight difference is in.. can i use book method to solve the weighed avg interest method

latest answer

Yes

MONIKAA RAMESHKUMAR

MONIKAA RAMESHKUMAR

CA Inter

710

1

141

Subsequent Recognition of Current Investments

Accountancy

answered on 02-Mar-24 20:05

Hi sir, hope you're well. Generally, we reduce the carrying value down to lower of cost / FV, at balance sheet date. Suppose we make a sale of part of the investment before the balance sheet date, do we reduce the carrying value down to lower of cost / FV first, and then book profit / loss on disposal? Or is there no need to check for revaluation apart from balance sheet date. Thanks

latest answer

For sale you directly compare carrying amount and sale value.

Devaprasad Jothimani

Devaprasad Jothimani

CA Inter

0

1

233

Adjustment regarding final accounts

Accountancy

answered on 02-Mar-24 19:32

In this question, intdrim dividend paid is given as 18000 but un the adjustments, final duvidend is declared at 10 percent. Why arent we showing that or deducting it from profit

latest answer

Date of declaration is after FY end.

Parvathy Ajith

Parvathy Ajith

CA Inter

0

1

236

Consolidation

Accountancy

answered on 01-Mar-24 09:43

In consolidation if question didn't mention about general reserve pre or post then we consider It as per is it correct?

latest answer

It would be given in the question reserves on date of acquistion

Mile s

Mile s

CA Final

250

1

231

ILLUSTRATION 4 I COMPLETE RECORRDS

Accountancy

answered on 13-Mar-24 14:29

sir in illustration 4 some items of furniture whose written down value on 31st march 20x1 and sold on 30th September 20x1 for 8000 is related to previous year transaction but how it can be shown in current year cash book and p and l account

latest answer

Think of it as 31st March 2001 & 30th September 2001. So if it is sold during September 2001, it falls in financial year ending 31st March 2002.

Surya Kiranmayee

Surya Kiranmayee

CMA Inter

0

1

159

SUM NO 8

Accountancy

answered on 13-Mar-24 14:15

In this question, the solution contains the profit and loss a/c already reduced from (875-50) and shown as 825 while passing the journal entries and again why are we deducting the 50 in the balance sheet as from(825-50)?

latest answer

The cost of issue of debentures has been reduced from the P&L balance.

Srividhya Sundarrajan

Srividhya Sundarrajan

CA Final

3K+

4

208

Wrong Video Uploaded

Accountancy

answered on 02-Mar-24 20:06

There is no Question and Answer Video

latest answer

This has q&a

Prateek

Prateek

CA Inter

120

1

287

AS 28

Accountancy

answered on 02-Mar-24 20:07

Why there are no problems solved in AS 28 in the video lecture, which is there in the study material provided by you

latest answer

towards 3rd week of March.

Prateek

Prateek

CA Inter

120

3

132