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Capital redemption reserve

Corporate & Other Laws

answered on 22-Oct-21 12:02

If it says that we use capital redemption reserve ac for redemption of preference shares,then y do we use it for issuing bonus shares,I am confused here ,what is it actually used for

latest answer

When we redeem preference shares, it's basically reduction of capital. We are paying shareholders before creditors get paid. So, for protecting interests of outsiders, law says if we are redeeming preference shares without any new issue of equity shares i.e. we are redeeming preference shares out of profits that we already earned during last year(s), we should transfer some profits to an account that can only be used for bonus issu. That is why we open CRR account. So that free reserves don't get distributed as dividend. We want to restrict their use.

Pramod Rajpurohit

Pramod Rajpurohit

CA Inter

0

7

1K+

Doubt related to advanced accountancy

Accountancy

answered on 20-Oct-21 11:13

Whats the meaning of this sentence Vested options which lapsed ?

latest answer

Vested employee stock option lapses on expiry of the exercise period, after the Accounting value of the option has already been accounted for as employee compensation, this Accounting treatment shall be reversed by a credit to employee compensation expense. Please watch all videos of ESOP., you will understand better

Venkatesh .

Venkatesh .

CA Inter

4K+

1

525

Practical question

Indirect Taxation

answered on 20-Oct-21 19:19

Sir in case we pay tax in wrong head(account) like in Igst rather in Cgst and Sgst.. they say to use gst pmt 09.. however somepeople amend the invoice and show in correct account..is this a right way to do sir?

latest answer

PMT 09 is only of transfer of balance from one head to another head if balance is in cash ledger. If its already then the only option is to amend it

vasabattula abhinav

vasabattula abhinav

CA Final

85

3

627

Marginal relief

Direct Taxation

answered on 21-Oct-21 12:07

Can anyone explain treatment of 1375500 in below attachment

latest answer

Yes. You can.

Sairam Reddy

Sairam Reddy

CA Final

10K+

6

673

Sec 194 dividend taxability

Direct Taxation

answered on 20-Oct-21 07:32

Provisio 1 states that the aggregate dividend paid or payable to an resident individual in a year is less than 5000 rupees, there will be no deduction. 1. Is the aggregate amount is sum total of one company? 2. Is the aggregate amount is sum total of dividends from one or more companies? 3. If answer is 2, then how the other companies will come to know the dividend paid by them is <5000 when they do not know what is the dividend paid by other companies?

latest answer

Each company will check only their payout.

John Selvaraj

John Selvaraj

CA Inter

140

1

591

Mcq

Strategic Management

answered on 20-Oct-21 06:24

Please explain this MCQ

latest answer

Ok sir, thank you

Priyanka Udeshi

Priyanka Udeshi

CFA L1

14K+

7

611

present value annuity factor calculation

Financial Management

answered on 26-Oct-21 11:10

sir my calculator seems to be not performing the formulae i.e, '=" and "+" n times pls suggest me what to do p.s : in the chapter' cost of capital'

latest answer

Record for the following 1 divided by 5 = press divided by symbol and then = and then =

Bhavya Kumar

Bhavya Kumar

CA Final

7K+

8

857

Sale of goods act

Corporate & Other Laws

answered on 20-Oct-21 11:03

What is the meaning of highlights line I can't understand this language plz suggest the meaning of this highlights sentence in simple word

latest answer

The third person who entered into transaction of sale under estoppel should prove that he suffered damages due to such transaction and he had believed that the person selling was the owner

Sumita Shah

Sumita Shah

CA Inter

2K+

2

534

Tax

Direct Taxation

answered on 20-Oct-21 11:06

Is medical and health insurance the same? Can i claim deduction for health insurance service u/s 80D

latest answer

No, they are not same. Deduction allowed u/s 80D A medical insurance premium paid for self, spouse, children or dependent parents in any mode other than cash. Expenditure incurred on the account of preventive health check-up Medical expenditure incurred on the health of senior citizen (aged 60 years or above) who is not covered under any health insurance scheme. The contribution made to the Central government health scheme or any scheme as notified by the government.

Christeena Ambel

Christeena Ambel

CA Inter

5K+

1

582

OPC

Corporate & Other Laws

answered on 19-Oct-21 21:16

whether sec 8 is also excluded?

latest answer

okay sir

GOKULA LAKSHMI

GOKULA LAKSHMI

CA Final

21K+

2

523