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Dividend distribution tax

Accountancy

answered on 26-Feb-20 18:39

1.Can general reserve be used to set off the DDT in case of inadequate profits? Or will it be continued to be shown as a loss ? 2. Is DDT applicable in new tax regime?

latest answer

4%. For tax rates, you can refer to the updated income tax notes in Notes section of App.

Raviteja Kusumanchi

Raviteja Kusumanchi

Qualified CA

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Sale of good 1930

Corporate & Other Laws

answered on 24-Apr-20 10:27

Important &model case law questions

latest answer

Just go through previous year qstns

Rohan karthi

Rohan karthi

CA Foundation

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666

Exam fee

Others

answered on 25-Feb-20 23:40

help.. signature and photo is not visible in dashboard while applying for exam what to do

latest answer

Tq

Jagini Ashruth

Jagini Ashruth

CA Final

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757

Time value of money

Maths & Stats

answered on 02-Mar-20 10:37

In how many years will a sum of money doubles at 5% p.a. compound interest ?

latest answer

It is an approximation tool and is not actual. The logic is it takes ~ 70 years for a sum to double @1%.

Prerana raghavendra

Prerana raghavendra

CA Foundation

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Eis amendments

Information Systems

answered on 25-Feb-20 19:33

Amendments fr eis inter may 2020 isnâ??t included in videos i purchased .will it be uploaded sir ?

latest answer

It will be uploaded in first week of March

Nishita Subramanian

Nishita Subramanian

CA Final

8K+

1

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Doubt

Accountancy

answered on 26-Feb-20 17:54

On 1st jan provision for doubtful debts existed at 40,000.Trade receivables on 31-12-17 were 15,00,000;bad debts totalled 1,00,0000.it is required to write off the bad debts and create a provision equal to 5% of trade receivables balances. In the above problem when we create provision for bad debts account why we enter open balance of provision for doubtful debts in credit side of provision account. Can any one suggest me so that it would be helpful

latest answer

When the amount is not recoverable we call it bad debt and reduce it from debtors. Bad Debts A/c Dr. [This is ultimately transferred to P&L] To Trade Receivables/Sundry Debtors [Here actual balance in debtor is being reduced] What is a provision for bad debt? Basically , the business is keeping aside some amount to take care of bad debts which might arise in future. Say Current debtors are 1,00,000 and the company expects 5% will not pay (based on past experience). For this the company would make a provision of Rs.5,000. Here the company would not credit the debtors by 5,000 (as we do in case of actual bad debt) because the debtors is not yet bad. So for this we create a provision (set aside amount from profits). Profit & Loss Dr. To Provision for bad debt (This will always be a credit balance) Now in next year say 0,000 of debtors became bad. Bad Debts Dr. 9,000 To Debtors 9,000 Now the bad debt is an expense which has to be transferred to P&L. Out of 9,000 , 5,000 was already provided last year. So we will use that provision now. Dr. Provision for bad debt 5,000 Dr. Profit & Loss 4,000 (for balance ) Cr. Bad debts 9,000. For any new provision to be created, similar entries as passed earlier. [These are actual entries - In exams we can combine and pass entries]

sai t

sai t

CA Foundation

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Related parties

Indirect Taxation

answered on 10-Mar-20 17:15

A Ltd, B Ltd are controlled by C Ltd. A, B and C all three are related parties? Or only A & B?

latest answer

A, B&C all the three are related parties

Suresh Reddy

Suresh Reddy

CA Inter

620

3

753

Practice questions

Accountancy

answered on 26-Feb-20 17:55

Sir where can I get practice questions for CA Foundation accounts which is helpful for preparing for exams

latest answer

Refer to past exam questions and RTPs.

sai t

sai t

CA Foundation

2K+

1

744

Quadratic equation

Maths & Stats

answered on 27-Apr-20 19:35

Find the quadratic equation sum of whose roots is 3 and the sum of cubes of roots is 7

latest answer

Let roots be a & b; a + b = 3; (a)3 +(b)3 = 7 (a+b)3 = a3 +b3 +3ab(a+b) (a+b)3 = 7 + 3ab( 3) (3)3 = 7 + 9ab 9ab = 20 ab = 20/9 a+b = 3 A quadratic equation is x² - (sum of roots) x + product of roots= 0 x² - 3x +  20/9 = 0 9x² -27x +  20 = 0

DIVYA S

DIVYA S

CA Final

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Dividend Declared treatment in financial statement

Accountancy

answered on 26-Feb-20 17:57

Dividend declared means declared by the shareholders in annual general meeting. And AGM happens after the financial statement gets approved by board & gets audited by auditor And we prepare financial statement on 31st March Then how dividend Declared can be accounted in that financial year ?

latest answer

Dividends declared on AGM (Say in September 2019) will be accounted as dividend in financial year 2019-20. The concept of provision for dividend no longer exists. Dividend is accounted only when approved - by BOD in case of interim dividends and by Shareholders in AGM in case of Final dividend.

Chandan Subudhi

Chandan Subudhi

CA Final

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