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Amalgamation, Journal entries in books of purchasing company
Accountancy
answered on 19-Aug-24 15:21
in this lecture, while passing journal entry in the books of purchasing company, for the expense of liquidation etc (legal charges etc for liquidation) is debited by the name GOODWLL, for the reason that purchase consideration paid is more than the net assets that purchasing company got from selling company. that extra amount paid as liquidation or legal charges should be shown as an expense in the books of purchasing company, why it is shown as a goodwill (asset)?
latest answer
If purchasing company pays on behalf of selling company than in selling company books, Dr Realisation Cr. Purchasing company.
Garima Bhargava
CA Inter
★ 185
7
2K+
Ratio Analysis
Financial Management
answered on 12-Aug-24 11:25
Sir the following question is not covered in the class. Why in ICAI practical problem 7, the Equity in the Debt to Equity is considered only as Equity shareholders fund.
latest answer
As per the chapter Ratio Analysis Equity = NW = Prop Fund = Owners Fund = ESC+RS+ PSC also. So in computation of Debt/Equity ratio ideally PSC should be included but institute has ignored PSC. So please follow as per institute’s practice only
Muhammed Salih
CA Inter
★ 18K+
1
297
FEMA
Corporate & Other Laws
answered on 12-Aug-24 17:51
In the solution, Mr. Z will be a PRI in year 2020-21 till 31.07.20 only and thereafter he will be a PROI. Am I right? (Illustration 2)
latest answer
Yes he will be considered as PROI since he has gone out of India for higher studies.
Sagar Kathuria
CA Final
★ 3K+
1
303
Indas 1 - Oct 2018 MTP question
Financial Reporting
answered on 12-Aug-24 15:32
On sale of investment, 2L transferred from Balance sheet to P&L (1.4L and 0.6L), we need to do the same reclassification in OCI also, but it seems they have not done it. Am I right? Or the given solution is right?
latest answer
Yes - You should adjust from OCI as well.
Smile A
CA Final
★ 3K+
1
378
Study partner
Exams
answered on 19-Aug-24 17:12
Anyone who is preparing for CA final group 1 appearing in Nov 2024 kindly connect. I've articleship as well but I promise to keep up my study commitments
latest answer
https://chat.whatsapp.com/CCMnufy66pc3tYnOU6SBoW
Archana Iyer
CA Final
★ 0
4
414
Adjustable selling price method
Accountancy
answered on 12-Aug-24 15:29
In illustration 7 of the icai textbook, they have asked to find the non historical cost of closing inventories. In the last step, the calculated the rate of gross margin which is 20%. They have minused 20% from 50,000 to get 40,000. Why?
latest answer
Sales - Cost = Gross Profit So Cost = Sales - Estimated GP
Ornitha Shree U
CBSE XI
★ 0
2
451
Accounting estimate
Financial Reporting
answered on 09-Aug-24 14:19
Sir here change in depreciation method is change in accounting policy right
latest answer
Accounting estimate as per ind as 16
R Yashwanth Kumar
CA Final
★ 87K+
1
227
INDAS 1
Financial Reporting
answered on 09-Aug-24 12:00
How to present foreign currency translation gain at the time of sale? What is the treatment in P&L, OCI and Balance sheet? What will be the effect of current tax at the end of the year? Can anyone please solve and explain?
latest answer
How much should be transferred to p&l, and what will be the effect in oci?
Smile A
CA Final
★ 3K+
2
212
As 10
Accountancy
answered on 09-Aug-24 10:56
Depreciation sums in book back can't able to understand amd also revaluation sums
latest answer
How did you do your preparation?
Gomathy D
CA Inter
★ 0
1
272
Consolidation of financial statements
Accountancy
answered on 09-Aug-24 11:57
Generally we calculate cost of control on date of acquisition.Therefore why haven"t they considered 3000 lakhs (share capital as on date of acquisition) as share capital and solved cost of control? why have they considered 4800 lakhs which as at 31 march 2021 as the share capital and solved cost of control?
latest answer
yes
Niveta Rajkumar
CA Inter
★ 6K+
3
331