REDEMPTION OF DEBENTURES

answered 5 hrs ago

WHEN ISSUING DEBENTURES AT PAR AND REDEEMING AT PREMIUM THE ENTRY WILL BE DEBENTURE APPLICATION A/C DR 1000 LOSS ON DEBENTURE AC DR 100 TO DEBENTURE A/C 1000 TO PROVISION FOR 100 PREMIUM ON REDEMPTION OF DEBENTURE A/C FROM WHERE DID THE ADDITIONAL AMOUT OF 100 CAME BECUASE AT ISSUE WE ARE ASKING FOR 1000 ONLY????

latest answer

Itw Simple.. Example : I need a money of 1000 right now.. And u gave me.. right away i said i will repay this amount after 2 years... Now think for yourself... Now while I am repaying i will give you 1000rs only... Will you accept it... The answer is no..... you will ask for extra money which is over and above the. 1000 Rs..... . The same way When a company wants money , They will issue an debenture at par.. let's say 1000 Rs.. And while repaying They will give back extra amount which is called as an premium on redemption of debtenutes....... I hope u got it. 😇

Prathmesh Sanjyot Kharul

CA Foundation

★ 5K+

1

13

Consolidated profit and loss account

answered 5 hrs ago

In solution of these question, why is "production expenses" shown under "cost of raw materials consumed"?

latest answer

Production expenses related to *raw material* consumption should be categorized under the appropriate head as specified by the Companies Act. Any expenses that do not fit under the specified heads should be classified as "other expenses." Extraa Tip: If any expenses which is not fit under heads will be shown as other expenses

Safa Saleem

CA Inter

★ 4K+

1

14

same video repeating

asked 14 hrs ago

same video repeating in Framework for choosing Accounting Policies and Funtamental accounting suuptions

latest answer

No answers yet!!

Sandesh

CA Inter

★ 0

0

16

Question

asked 2 days ago

I can't understand Q3 (b) pls explain it

latest answer

No answers yet!!

Shivashankar Jawai

CA Inter

★ 450

0

29

Cash flow statement

answered 2 days ago

Financial management , study material of ICAI , On page 9.52 of module 2 , illustration 8, in cash flow statement, 50 lakh is subtracted as cash required for increase in stock. Please explain why it is subtracted , as also adjustment is done in making entry in profit and loss account of 420 lakhs of material consumed in year 3 .

latest answer

50 L is increase in stock. (In question they told that the closing stock is expected to go up by same amount as between year 1 and 2)(15L - 10L) Please refer working notes for material consumption (35% of sales)

Anirved Rahatgaonkar

CA Inter

★ 0

1

32

Premium on redemption of Preference Shares

answered on 14-May-24 11:16

Sir when we pay premium on redemption of Preference Shares and adjust it against profit and loss account. Should we debit in pl or deduct from pl reserve in R&S. Similar where to write off preliminary expenses.

latest answer

Profit & Loss account for both premium and also preliminary expenses.

Shrihitha Udupa

CA Inter

★ 170

1

40

AS 3 Cashflow Statement

answered on 15-May-24 17:15

For a financial institution, would a Loan taken be Financing activity? Would Interest paid on this also be Financing?

latest answer

Financing.

Vishnu

CA Inter

★ 21K+

2

58

Wrongly attempted question

answered on 15-May-24 17:16

Sir... I had wrongly attempted all question by mistake i had reasonable assurance that last question was right is there any chance for marking those question if iam at the stage of having a little mark for passing....... Please reply

latest answer

No problem. You will get marks for best 4 questions.

Visruth Vichu

CA Inter

★ 890

1

54

AS 10, revaluation reserve which method is proper ?

answered on 12-May-24 05:45

Sir there are 2 ways one question is solved in sujjested answer different format is mentioned and in icai mat different format is mentioned

latest answer

TO BE SPECIFIC ABOUT REVALUATION RESERVE Q7 = in solution where, net book value from 1/4/15 Q15 = 2nd box in solution Q16 = solution 4point

Sushmita Chowdhury

CA Inter

★ 710

3

44

AS 12

answered on 09-May-24 09:10

If the asset is accounted for a nominal value of say ₹1 or ₹10 and the useful life is 10yrs, then what will be the amount of depreciation that will be charged for the useful life of the asset?

latest answer

Depreciation will not be charged as it is immaterial

Mahesh Ram

CA Inter

★ 0

1

53