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Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 1) X LTD SET UP A NEW FACTORY IN THE BACKWARD AREA AND PURCHASED PLANT
FOR RS 500 LACKS FOR THE PURPOSE. PURCHASES WERE ENTITLED FOR CENVAT
CREDIT OF RS 1O LAKHS AND GOVT. ALSO AGREED TO EXTEND 25 % SUBSIDY FOR
BACKWARD AREA DEVELOPMENT. DETERMINE THE DEPRECIABLE VALUE OF OF THE
ASSET

A) RS 500 LAKHS
B) RS 392 LAKHS
C) RS 400 LAKHS
D) RS 390 LAKHS

Sanket

Sanket (Expert)
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17 December 2012 392 lakhs....

500 lakhs
less: 10 lakhs (Cenvat)
less: 98 lakhs (Grant)

So 392 Lakhs...

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 can u tell me on what basis....98 LAKHS GRANT....?

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Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 1) machinery purchased in consideration of equity shares.....CASH FLOW IS IT A) FINANCING OPERATING C) INVESTING D ) NONE OF THE ABOVE

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 2) BRAND GENERATING COST 1) can be capitalized if measured reliably 2) can not be capitalized

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 2) BRAND GENERATING COST 1) can be capitalized if measured reliably 2) can not be capitalized

Sanket

Sanket (Expert)
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17 December 2012 It is agree to extend 25% so consider 490(500-10) as 125% and then with the equation like....
125----------490
25------------(?)

So you will get 98.

Sanket

Sanket (Expert)
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17 December 2012 Purchase on Machinery under investing activity....

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Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 but they have purchased against consideration of equity shares of the company

so...not a financing?

Sanket

Sanket (Expert)
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17 December 2012 NO.....I was wrong...
There is no effect in cash flow statement as the cash is not affected....

Sanket

Sanket (Expert)
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17 December 2012 As per my knowledge,Expenditures related to brand can be capitalized as development costs.

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 k...so internally generated brand or brand generated cost....means different or same?

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Sanket

Sanket (Expert)
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17 December 2012 I think both are same......

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 where should i show...fixed asset purchased of Rs. 50000 against issue of equity shares....but obviously...company will issue...so it.will give consideration....same what usully calculate...during Mergers problems....