Avadhut (Analyst) (53 Points)
22 June 2008Hi,
I am an MBA and would like to know -
1. What is Investment Allowance Reserve
2. What is Capital Redemption Reserve
3.What is Dividend Equalisation Reserve?
4. What is Revaluation Reserve?
5. When the company spplits its shares,what's the change in the capital structure, if any?
6. What is Deferred TAX Asset/Liability?
aravind
(ca-pcc)
(0 Points)
Replied 23 June 2008
hai .Plz tell me. how to register my name in this club. i registered so many times. but no response from ca club. how to activate my account?
CA. Atindra A. Prabhu Bhatikar
(practising CA)
(68 Points)
Replied 23 June 2008
Investment allowance reserve is deleted long back from the Income Tax Act.
When preference shares are redeemed, CRR is created to the extent of the share capital redeemed out of the accumulated P&L reserves.
If the fixed assets are revalued, the amount over and above the historical cost ie the purchase price is credited to revalutation reserve. If in future the value reduces, then debit to this account.
To maintain a steady rate or amount of dividend, certain amount of profit is trans to Div equi reserve. This ensures that the dividend is paid at a steady rate to the investors.
Share split would definitely have an impact on the capital structure. A company has 100 shares of Rs.10/- each. If there is 1:2 share split, then share capital would be 200 shares of Rs.5/- each.
A company pays tax according to the net profit arrived at after making adjustments to profit arrived as per the books of account. thus there is always diff between book profit and tax profit. Deferred tax tries to reconcile this diff.
Ah! Finally I've done it.
Avadhut
(Analyst)
(53 Points)
Replied 23 June 2008
venugopal reddy
(Student CA Final )
(22 Points)
Replied 06 July 2016
what is the treatment of Investment Allowance Reserve (statutory reserves) while amalagamation ?
both in the transferor and transferee company.
mainly in transferor company(selling comapny). and what is the journal entry we need to pass ?
Naveen kumar
(Student CA-ipcc)
(26 Points)
Replied 31 March 2017
After u registered, u will recieve a mail from CAclub for confirmation and to activate your account by yourself, so there u need to accept the activate your option account
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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