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Radhika
08 April 2010 at 18:55

Consolidated Financial statements

How should one treat this while preparing holdind co. B/s(treatment of pre acqn profits):-
The shares(of subsidiary co.)purchased on 31.7.1999, are ex dividend & Ex bonus from existing share holders...
Dt of acqn no's cost
1.4.99 8000 110000
31.7.99 6000 86000
Total shares in subsidiary co-20000

The a/c's of Holding co are prepared as on 31.3.2000.

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Anonymous
02 April 2010 at 14:42

general

in permanent and timing difference which
type of accounting generally used to followed . if anybody is having reply pls give the reply.

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DEEPAK GOYAL
02 April 2010 at 11:47

damage of goods in transit

goods sold damaged during the transit what will be the effect of excise duty and cst what will be the accounting entry for that?

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S.Neeraja

Hi,

This is a practical problem I am facing while preparing the financial statements of a foreign entity. "A" company received share application money of USD 30,000 which is inclusive of share capital and share premium in March 2009 in its USD bank account. The allotment of shares was done in April 2009. The share certificate states that the issued shares are 1,000 shares of EUR 1 each and a premium of EUR 23 per share. The USD/EUR exchange rate in March 2009 was 1.25 and in April 2009 is 1.50. The reporting currency is USD. Please suggest me on 2nd entry:

1st journal entry: (On receiving money in March 2009)
Bank Dr USD 30,000
To Share application money A/C USD 30,000

2nd journal entry:(On allotment in April 2009)
Share application money A/C Dr USD 30,000
Currency exchange results A/C Dr USD 6,000
To Share capital A/C USD 1,500(1,000*EUR 1*1.50)
To Share premium A/C USD 34,500 (1,000*EUR 23*1.50)

Do I need to recognize the currency exchange results on allotment of shares. Kindly advice.

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Anonymous
22 March 2010 at 15:14

Invoked BG Or Devolved LC

How shuold the invoked Bank Guarantee accepted by the Bank but not paid to the beneficiary on the date of Balance sheet be reflected in the Balance Sheet of a Bank.

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Anil Kumar Meena
19 March 2010 at 12:17

RENT EXPENSE

Hi All,

I have a query relating to posting on rent expense as per US GAAP.Let us assume in 2009 we booked rent $5000 which should be $25000. now we are at march and december 2009 financial closed and audited as per US GAAP.
can you please tell me how we book this $20000 in current financial?
If you u want some more information just let me know.
Thanks,
Anil

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K R Ramesh
19 March 2010 at 09:49

Capitalisation

We have purchased extra monitors for few existing computers for convenience on looking/monitoring multiple sheets.

What should be the treatment done for these items in the books of accounts ?

Do we need to capitalise it ? If you look at a standalone basis these monitors cannot perform any function indepedenlty. What should be the correct treatment as per Accounting Standard /Law?

Please advice

Many thanks in advance

Regards

Ramesh

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sona
17 March 2010 at 19:01

ACCOUNTING STANDARDS

DEAR ALL,
I HAVE A QUERY RELATED TO AS 16(BORROWING COST). I WANT TO KNOW ABOUT THE EXTENDED PERIOD OF QUALIFYING ASSET IN RELATION TO WHICH THE BORROWING COST IS CAPITALIZED. WHEN WE NEED TO LOOK AT THE REASONS FOR DELAY IN DEVELOPMENTAL ACTIVITIES.AND IN which case we have to suspend the capitalization?

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Anonymous
14 March 2010 at 13:27

NEGATIVE BALANCE OF CASH

Hi,
Respected Member of CCI

One of my office client have negative balance in Cash balance in books of account.
So how i adjust such negative balance in positive in appropriate manner and pratical way please guide me.
Before i go my principal i want to know way to handle this.

Thanks
advance

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CA Anshu Agarwal

please any one clarify me the difference between Provisions and Accruals.

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