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Redemption of preference shares
Accountancy
answered on 16-May-23 20:00
We know there are 2 ways we can redeem preference shares (PS), one is by making fresh issue of shares and other is transferring divisible profits to CRR. All this to provide protection of creditors n outside liabilities. The question is, no doubt by fresh issue we can bring in money/funds (BCz it will increase bank balance) and then creditors can be assured that they can be paid from those funds later, if need arises (since redemption of PS would've decreased the bank funds) BUT in case we create CRR out of divisible profits, we are not introducing any additional funds/bringing any money into the company, rather we are just transferring from one reserve to another and asset side of balance sheet doesn't increase (funds doesn't increase in this case) then how can creditors feel assured/protected by creation of CRR? And even tho we created CRR, the bank bal.would've decreased on asset side. Also CRR can be used later just to issue bonus shares (ie. It increases capital ultimately), but bonus issue is optional, what if company never issues bonus out of CRR and let CRR remain same/maintained till eternity, how can creditors feel safe with CRR balance? Can CRR bal.be directly used to pay off creditors later during liquidation (so that they will feel secure with CRR balance too)
latest answer
Ok sir, thanks for clearing
Garima Bhargava
CA Inter
★ 185
4
612
Deductions
Direct Taxation
answered on 16-May-23 16:51
Will deduction for life insurance policy taken( premium paid) even if whole Amt is paid via cash ?
latest answer
Yes
SANSKRITI BADRI 2111339
CA Final
★ 4K+
1
522
Redeeming partly paid up preference shares
Accountancy
answered on 16-May-23 16:54
Why there is a provision that only fully paid up preference shares can be redeemed, what harm could've been done if partly paid up shares would've been redeemed and why it is discouraged Like company could've paid back pref.share holders whatever amount they've paid on those shares (if only ₹75 are paid up on shares of FV ₹100 then co.could simply pay back ₹75 to such pref.share holders and redeem those shares)
latest answer
Ok sir
Garima Bhargava
CA Inter
★ 185
2
592
Indian Partnership Act
Corporate & Other Laws
answered on 16-May-23 15:31
Which sections to quote and which points to write to the question Describe the Relation of Partners to Third Parties ? Please help
latest answer
Ok Thank you
Ardhendu Sekhar Acharya
CMA Inter
★ 250
4
606
Deduction
Direct Taxation
answered on 16-May-23 09:33
Suppose employers contribution to NpS is 1.2L and 1.2Lfor employees contribution .. as per 80CCD(1) let’s say he can claim only 90k as deduction .. so under 1B can he claim full 50 k in respect of balance of employer and employees contribution ,or can he only claim 30k, the difference between total employees contribution and 80CcD(1) deduction?
latest answer
30K Proviso to sub-section (1B) states "that no deduction under this sub-section shall be allowed in respect of the amount on which a deduction has been claimed and allowed under sub-section (1)."
SANSKRITI BADRI 2111339
CA Final
★ 4K+
1
450
Itc apportionment
Indirect Taxation
answered on 16-May-23 06:32
Is it there in our syllabus?
latest answer
Earlier it was a part
Sugam SM
CA Final
★ 9K+
2
637
ITC
Indirect Taxation
answered on 16-May-23 16:34
Employer purchased MV vehicle on which ITC is not allowed but that is used for transportation of employees as part of stat obligation. Can ER claim ITC?
latest answer
Not allowed
Sugam SM
CA Final
★ 9K+
9
553
Indian contract act 1872
Corporate & Other Laws
answered on 16-May-23 11:31
Is advertisement is general offer?
latest answer
Thank youu
Hena Desai
CA Foundation
★ 5
9
796
Returns
Indirect Taxation
answered on 15-May-23 17:34
Is this correct or amended. Amendment of details timelimit
latest answer
Oh sorry sir Usually amendments are highlighted. My bad
Sugam SM
CA Final
★ 9K+
2
741
Branch Accounting - Independent branch - 24. Illustration - 8
Accountancy
answered on 16-May-23 17:06
In this above question, it is given goods are invoiced at Cost + 20% on sale price. While preparing trading account of the branch we are assuming the amounts given for opening stock and goods from H.O are at invoice price and so we are adjusting(reducing) the amounts to only cost values in trading A/c. Following the same assumption isn't it more logical to assume the goods returned to H.O are also in par with the goods received and assume they are at invoice price. Consequently shouldn't we adjust the returns amount to cost. kindly clarify.
latest answer
Sorry I didn't notice that. Thanks for the reply sir.
Aswin Chandar
CA Final
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2
949