AS-21

This query is : Resolved

C.A. LINESH PATIL (Querist)
Follow

14 February 2011 if balance in share premium and capital reserve account is 20000 at the time of acquisition of subsidiary shares and 50000 at the time of consolidation.

so my question is that whether 30000 will be considered as capital profit or revenue profit under AS 21.

please reply as soon as possible
Thanks

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
Follow

14 February 2011 Rs. 30000 is to be treated as balance in premium and capital reserve of subsidiary.

C.A. LINESH PATIL

C.A. LINESH PATIL (Querist)
Follow

14 February 2011 u means to say that it would be treated as capital profit.because dividend cant be paid out of these two items

Upgrade to CAclubindia Pro. Subscribe Now!

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
Follow

14 February 2011 RS.30000/- will be treated as capital profit, becouse it is a part of share premium and capital reserve account not a part of revenue profit.