Let me any body confirm that question 2(a) is correct or not, In the problem they have given 75000 equity shares of Rs.100 each = 75,00,000. On this 20% means = 15,00,000. Total available profit = 10,00,000. How can we distribute... If that share value will Rs.10 we can do that, please clarify..
Menu
IPCC May 2014 accounts paper, question wrong??
Replies (17)
Yaa you are right i also find the same problem as u have but i did it with 1500000 and shown the method of computing staff bonus . Rest in the hands of icai. Lets see what happened
Thanks for reply.. lets wait to see what happens..
will thy giv full marks? i hav too worked out tat question... hw do we confirm abt it?
Can u do question no. 2b,5a,7a,7b,7c
Can u do question no. 2b,5a,7a,7b,7c
Yes. Question was wrong. If we take 10/- as share price. Answer will be as follows
|
Current year Profit |
1,000,000 |
|
Less: Depreciation |
37,500 |
|
Tax provision |
120,000 |
|
Balance available for appropriations |
842,500 |
|
Less: Transfer to reserve (842,500 * 25%) |
210,625 |
|
Staff bonus provision (75,000 X 100 X 20% X 10%) |
15,000 |
|
Balance available for distribution of dividend |
616,875 |
|
Less: Preference dividend (12,000 X 100 X 15%) |
180,000 |
|
Less: Equity dividend (75,000 X 100 X 20%) |
150,000 |
|
Balance |
286,875 |
|
Less: Carried forward profit (12,000 X 100 X 14%) |
168,000 |
|
Balance for additional dividend |
118,875 |
|
Distribution of additional dividend |
|
|
Balance for additional dividend |
118,875 |
|
To preference share holders (1/3) |
39,625 |
|
To equity share holders (2/3) |
79250 |
|
Net balance of P&L |
|
|
Op. balance in P&L |
150,000 |
|
Carried forward current year profit |
168,000 |
|
Net balance in P&L |
318,000 |
If we take 100/- as share value. answer is as below. We need not pay equity dividend in case of insuffitient profits
|
Current year Profit |
1,000,000 |
|
Less: Depreciation |
37,500 |
|
Tax provision |
120,000 |
|
Balance available for appropriations |
842,500 |
|
Less: Transfer to reserve (842,500 * 25%) |
210,625 |
|
Staff bonus provision (75,000 X 100 X 20% X 10%) |
150,000 |
|
Balance available for distribution of dividend |
481,875 |
|
Less: Preference dividend (12,000 X 100 X 15%) |
180,000 |
|
Balance |
301,875 |
|
Less: Carried forward profit (12,000 X 100 X 14%) |
168,000 |
|
Balance for additional dividend |
133,875 |
|
Distribution of additional dividend |
|
|
Balance for additional dividend |
133,875 |
|
To preference share holders (1/3) |
44,625 |
|
To equity share holders (2/3) |
89,250 |
|
Net balance of P&L |
|
|
Op. balance in P&L |
150,000 |
|
Carried forward current year profit |
168,000 |
|
Net balance in P&L |
318,000 |
Don't know about that, have to pay or not for equity dividend..
In question given that "after making provision (1), (2), (3) mentioned above"
So without paying to equity shares how can we calculate..
2(b) is per and post incorporation profit.. and 5(b) from h.purchase and 7(a) from Non trading concern , 7(b) cash flow statement
hey gys .. u all dont wrry abt anything .. just stay focussed on ur next exam.. if there is any mistake reg question in exam.. then ICAI will deal it with in right manner.. normally if anything like that happen from ICAI.. then ICAI give proportionate marks to each student but only those who hav attempted that particular question... so dont wrry abt it. ICAI wil deal with it.. TRUST ICAI.. and all the best for ur next exam
I need solution of that
The question was right and we have to calculate bonus by taking it x and susquently decreasing x- eqd pref. Div. Because the bonus calculation method is not provided in question and equity dividend and pref. Dividend has to be calculated after deducting x that is bonus.
Refer parveen sharma book , similar question is there.
If I did not attempt the sbove qurstion any benefit could be given by ICAI
If anyone reply my quary
Recent Threads
- Clubbing query (when gifts given to multiple fami
- Transfer Pricing Audit Upload Form 3CEB - Income T
- Only a Few Pages Indexed by Google Despite Sitemap
- Share sale by promoter of public limited company
- Individual working for a firm to take sales orders
- BIN view site not working
- Settlement of advance by customer
- GST chow cause notice
- Un claim ITC
- Form 49AA - OCI card holder applying for PAN card
Related Threads
CAclubindia
