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Sir, In this sum how to make adjustments for Bonus and what will be post acq profits. Please explain
Answers (27)
Here when bonus shares are issued then we shall find first how many bonus shares i.e.,180l shares into 3 by 5 we get 108l shares so now we can get no.of shares of holding company i.e., 180l+108l=288l . And they had given bonus shares are issued out of general reserve balance so we have to reduce that amount from opening balance of general reserve i.e. 3000l*3/5 = 1800l so 1200l will be capital profits remaining balance of general reserve is revenue reserves i e 1380l-1200l=180l
Sai Geethika
Here when bonus shares are issued then we shall find first how many bonus shares i.e.,180l shares into 3 by 5 we get 108l shares so now we can get no.of shares of holding company i.e., 180l+108l=288l . And they had given bonus shares are issued out of general reserve balance so we have to reduce that amount from opening balance of general reserve i.e. 3000l*3/5 = 1800l so 1200l will be capital profits remaining balance of general reserve is revenue reserves i e 1380l-1200l=180l
We are reducing becoz it is not accounted for by sub co right?
Sai Geethika
Yes
One more doubt pre acq profit will be 1200 lakhs and post acq profit is 420 lakhs is that crt
Thread Starter
Miradevi SOne more doubt pre acq profit will be 1200 lakhs and post acq profit is 420 lakhs is that crt
No 180l is post becoz in question they given 1380l in balance sheet so by reducing 1200l from 1380l we get 180l as post
Sai Geethika
As they given dividend credited to p&l a/c
After finding AOP in consolidated P&L we will deduct but in computation of AOP we will deduct
Sai Geethika
As they given dividend credited to p&l a/c
Will u please share the AOP computation please
Thread Starter
Miradevi SAfter finding AOP in consolidated P&L we will deduct but in computation of AOP we will deduct
You mean apportionment of profits and I didn't understand ur doubt clearly
Sai Geethika
You mean apportionment of profits and I didn't understand ur doubt clearly
We are deducting div in pre acq becoz div is reduced to arrive at profits right
Thread Starter
Miradevi SAnd then we add back div And again we reduce it Is this crt
I think so you are doing in different model and I am doing in different model becoz in our model we directly reduce dividend from opening of p&l a/c and after we will reduce the holding company part of dividend in coat of control and reserves of consolidated balance sheet
Sai Geethika
Okk
OK sis thank you so much and one more doubt for Bonus adj we reduced from GR After that there is no bonus adj right?
Sai Geethika
Ha not there
OK thanks for clarifying doubt all the best for your exams. Have you given for both groups
Thread Starter
Miradevi SOK thanks for clarifying doubt all the best for your exams. Have you given for both groups
It's ok and all the best to you even . I am attempting grp 2 wt abt u
Sai Geethika
It's ok and all the best to you even . I am attempting grp 2 wt abt u
Me too group 2 only sis same
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