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IND AS 102
Financial Reporting
answered on 08-Jan-26 13:40
Sir can u clarify is this change in FV results in modification or not
latest answer
No
P.udaykumar Pasupulati
CA Final
★ 2K+
2
231
Amalgamation of companies
Accountancy
answered on 29-Dec-25 16:56
K Ltd. and L Ltd. amalgamate to form a new company LK Ltd. The financial position of these two companies as at the date of amalgamation was as under: Particulars Notes ` K Ltd. ` L Ltd. Equity and Liabilities 1 Shareholders’ funds A Share capital 1 12,00,000 6,00,000 B Reserves and Surplus 2 3,71,375 1,97,175 13.39 AMALGAMATION OF COMPANIES 2 Non-current liabilities A Long-term borrowings 3 2,00,000 2,00,000 3 Current liabilities A Trade Payables 1,00,000 2,10,000 Total 18,71,375 12,07,175 Assets 1 Non-current assets A Property, Plant and Equipment 4 11,30,000 8,20,000 B Intangible assets 5 80,000 - 2 Current assets A Inventories 2,25,000 1,40,000 B Trade receivables 2,75,000 1,75,000 C Cash and Cash equivalents 6 1,61,375 72,175 Total 18,71,375 12,07,175 Notes to accounts 1 Share Capital K Ltd. L Ltd. Equity shares of ` 100 each 8,00,000 3,00,000 7% Preference Shares of ` 100 each 4,00,000 3,00,000 12,00,000 6,00,000 2 Reserves and Surplus General reserve - 1,00,000 Profit and loss account 3,71,375 97,175 3,71,375 1,97,175 3 Long-term borrowings 5% Debentures 2,00,000 - Secured loan - 2,00,000 2,00,000 2,00,000 © The Institute of Chartered Accountants of India ADVANCED ACCOUNTING 13.40 4 Property, plant and Equipment Land and Building 4,50,000 3,00,000 Plant and machinery 6,20,000 5,00,000 Furniture and fittings 60,000 20,000 11,30,000 8,20,000 5 Intangible assets Goodwill 80,000 - 80,000 - 6 Cash and Cash Equivalents Cash at Bank 1,20,000 55,000 Cash in hand 41,375 17,175 1,61,375 72,175 The terms of amalgamation are as under: (A) (1) The assumption of liabilities of both the Companies. (2) Issue of 5 Preference shares of ` 20 each in LK Ltd. @ ` 18 paid up at premium of ` 4 per share for each preference share held in both the Companies. (3) Issue of 6 Equity shares of ` 20 each in LK Ltd. @ ` 18 paid up at a premium of ` 4 per share for each equity share held in both the Companies. In addition, necessary cash should be paid to the Equity Shareholders of both the Companies as is required to adjust the rights of shareholders of both the Companies in accordance with the intrinsic value of the shares of both the Companies. (4) Issue of such amount of fully paid 6% debentures in LK Ltd. as is sufficient to discharge the 5% debentures in K Ltd. at a discount of 5% after takeover. (B) (1) The assets and liabilities are to be taken at book values inventory and trade receivables for which provisions at 2% and 2 ½ % respectively to be raised. (2) The trade receivables of K Ltd. include ` 20,000 due from L Ltd. © The Institute of Chartered Accountants of India (C) The LK Ltd. is to issue 15,000 new equity shares of ` 20 each, ` 18 paid up at premium of ` 4 per share so as to have sufficient working capital. Prepare ledger accounts in the books of K Ltd. and L Ltd. to close their books.
latest answer
What is your query?
Laxmi Kudagi
CA Inter
★ 140
1
486
Question
Financial Reporting
answered on 30-Dec-25 14:55
Sir, in this q it says specifically profit available to equity shareholders.can we assume that it is after reducing preference dividend?
latest answer
It is profit for the year.
SANSKRITI BADRI 2111339
CA Final
★ 4K+
1
150
No cash ledger
Indirect Taxation
answered on 31-Dec-25 14:00
Sir I did not understand the 4 th point ( last ) point telling other than used - IGST , CGST ECT [Video Time Stamp: 04:45]
latest answer
It is similar to GST that wherever automation is in place then payment to be made using cash ledger only.
Nisam M
CA Final
★ 1K+
1
172
epsilon
AFM
answered on 28-Dec-25 18:23
hi sir, w.r.t answer (b) can we do 'gain or loss = 2450*e^(2.41%)62/365-2303.64 [provided if the question gave the epsilon value] [Video Time Stamp: 18:07]
latest answer
Yes
Jayanth
CA Final
★ 6K+
1
186
how can a future expenditure be capitalized in cost at the beginning.
Financial Reporting
answered on 29-Dec-25 16:59
Sir, overhaul expense will be incurred in 4th year, so it will be capitalized in 4th year and depreciated through 5-8 years. how can we assume the overhaul expense of 3 million has included in the total cost and depreciated through first four years when it was not actually incurred. [Video Time Stamp: 00:02]
latest answer
You buy a machine for 8 years. But law / manufacturer says: “You can use it for only 4 years at a time. After that, overhaul is compulsory.” Can you use the machine for the first 4 years without that overhaul? The answer is NO. For us to use the machine it must be in overhauled condition. So the amount we are paying upfront includes (notionally) a portion towards overhauled component.
Shinisha Rose R
CA Final
★ 5K+
1
149
Rate on of duty on accessories is rate of duty charged on article but what value we will assign to the accessories as no amount is separately charged for accessories
Indirect Taxation
answered on 31-Dec-25 14:00
Rate on of duty on accessories is rate of duty charged on article but what value we will assign to the accessories as no amount is separately charged for accessories [Video Time Stamp: 04:40]
latest answer
If it is charged then that value is considered else no value.
Nisam M
CA Final
★ 1K+
1
206
Treatment of dividends in AS-23
Accountancy
answered on 29-Dec-25 07:38
Hello Sir, why are we reducing dividend from cost of investment (as it is not pre acquisition dividend)?
latest answer
Thank you Sir
Mohamed Kaiz
CA Inter
★ 5K+
2
183
Audit and auditors : disqualification
Corporate & Other Laws
answered on 29-Dec-25 09:04
The relative of the audit is allowed to hold securities of the company upto Rs.1,00,000. I wonder that the institute's is not concerned about the percentage of such holding. What if the company has total value of securities as 5,00,000. Then a relative of auditor holding 1,00,000 will be considered as a significant influencer of that company where the auditor is appointed.
latest answer
Yes
Vinod Kumar
CA Inter
★ 11K+
3
201
No of shares
AFM
answered on 09-Apr-26 07:35
PE is same as pre merger, then can i find this way ? but answer is different, please clarify sir [Video Time Stamp: 05:52]
latest answer
Good Question Q 12 they specified the PE ratio will remain unchanged hence we followed the method of PAT x PE in Q 17 they did not mention any thing about PE ratio - hence assumed Sum of M cap of both entities. If you look at assumptions of Q 17 i have specified also that no synergy benefits and no change in PE hence the difference
Muhammed Mubaris
CA Final
★ 190
3
208