banner_ad

valuation of shares adjustment ??

This query is : Resolved 
Profile Image

Profile Image

(Querist)
14 February 2011 Balance sheet as on 31/12/2005
asset side
Sundry debtors-Rs.40500

Adjustment:shares are to be valued subject to following adjustments.

A general reserve of 10% of total debtors after specific provision for doubtful debts, has been made fo the first time in 2005 accounts.

kindly explain me the effect of above adjustment in Future maintenable profits and in the net assets calculation.
Profile Image

CA bhargava

Profile Image

CA bhargava (Expert)
15 February 2011 In the given problem, tha actual debtors as on 31/12/2005 are 45,000/-
they have deducted an amount of rs.4500/-(10% of the debtors for RBD(reserve for bad debts)

while calculating the net assets,
take the debtors figure as 45,000/- and deduct from liabilities 4500/-as RBD.

if in the problem it says that the reseve to be maintained in future then take debtors as 45000 and deduct 4500 as RBD.
else take debtors as 45000 only and do not deduct RBD.
it depends up on the problem .and requirement.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
ARTICLESHIP 30 April 2026
Article Assistant

J SINGH & ASSOCIATES

Ahmedabad

CA Inter

View Details
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
27 April 2026
Senior Accountant

Jyoti K agarwal & co

Mumbai

Others

View Details
Company
10 May 2026
Finance specialist

Right way solution

Ajmer

CA

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
06 May 2026
Account Assistant / Article Clerk

V.K. Ranjan & Co(Chartered Accountants)

New Delhi

B.Com

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details