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NEED AN ARTICLE

02 August 2022

DEAR CHARTERED ACCOUNTANTS

my honorable Chartered Accountants this is my one of the most humble request to all, in our secret club India article section your posting so many knowledgeable thing...

.. show my request is please make a article of complete tax audit with them case studies examples of calculations this is my humble request to my honorable charted Accountants..

REQUIRED TAX AUDIT ARTICLE

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (176768 Points)
Replied 03 August 2022

https://www.incometaxindia.gov.in/FAQs+on+Tax+Audit

tax-what-is-tax-audit-and-to-whom-is-it-applicable

kanakkupillai.com/tax-audit

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MPR Sanjay Kumar (3113 Points)
Replied 03 August 2022

@ Thank you Dhirajlal sir,........I have one more question

capital redemption reserve a/c Dr
securities premium accounta/c Dr
General reserve a/c Dr

To bonus to shareholders a/c

Bonus to shareholders a/c Dr
To equity share capital a/c

General reserve a/c Dr
P& L a/c Dr
To bonus to shareholders a/c

share final call a/c Dr
To share capital a/c

Bonus to shareholders a/c Dr
To share final call a/c

could you please explain me detailly of this journal

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (176768 Points)
Replied 03 August 2022

This is the process of issuing the bonus to share holder and posting the expense to equity shares capital. Need to understand the concept first, then its simple to understand.

MPR Sanjay Kumar (3113 Points)
Replied 03 August 2022

1. here there deserted give the bonus issue of shares to the existing shareholders from various kinds of resource like capital redemption securities premium general reserve.....

2. typically redemption means what sir???

3. the company issues bonus shares to its existing shareholders again the company can buyback its shares??

4. what is the benefit of giving bonus issue

5. what is mean by final call here and capitalisation of profit means??

prasad Nilugal ( GST Practitioner & Accounts ) (14690 Points)
Replied 03 August 2022

1. Bonus shares are issued through Reserve Surplus

2. Redemption means to pay back the amount that collected by issuing shares, only preference shares can be redeemed,as per provisions of the companies Act.

3.Yes, Company Can buyback it's shares .

4. Capitalisation of profit and to increase the share Capital.

5. Final Call means the Applicant who have been allotted shares, falis to pay shares application and allotment money even after First call , then Final Call is applicable. however in Case of Bonus shares final Call is for collection of Bonus shares to whom it is allotted.

6. Capitalisation of profit means, bonus shares were issued through Reserve, and same reserve was created through profit , ulimetaly we Capitalise profit.

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