@Kals@ (CA Final) (87 Points)
27 April 2013plzzz solve my doubt...
Finacail Reporting Q No 12 of RTP May 2013 on CFS ( Pg No 18):
The Adjustment No (vi) Given is 10% Dividend is proposed by Each Company
Query : why in the solution Provision for Proposed Dividend is made only for Almighty Ltd and why not for Beloved and caring Ltd??..
plzzz plzzzz reply urgent
thnks in advance
courageous Aries
( )
(263 Points)
Replied 28 April 2013
friend there are 3 case in proposed dividend
Case 1
Balnce sheet
Liabilites
Proposed Dividend Nil(H) 10000(Subsi)
Assets
Div. Recivable 8000 Nil
In this case Div rec. is cancled and uncancld amnt is part of Minority Interest
Case 2
Balnce sheet
Liabilites
Proposed Dividend Nil(H) 10000(Subsi)
Assets
Div. Recivable Not recorded Nil
Folwing entry to be pased(Holding compny)
Dividend Rec a/c
to Div Income
Div Income
to P/l(Post Acqsn)
to Invstment(Pre)
step 2: same as Case 1
Case 3 Balnce sheet
Liabilites
Proposed Dividend Nil(H) Not record(Subsi)
Assets
Div. Recivable Not Recorded(h) Not record(s)
In this case no adjstment to be made, but Holding companies divnd is NOT to BE Ignored
I think it should be Case 3.....
@Kals@
(CA Final)
(87 Points)
Replied 28 April 2013
thanks very much:
but the above provision is as per Revised Sch vi or Accounting Standard or Giudance Note
CAclubindia
