AS-21
This query is : Resolved
C.A. LINESH PATIL
(Querist)
14 February 2011
if balance in share premium and capital reserve account is 20000 at the time of acquisition of subsidiary shares and 50000 at the time of consolidation.
so my question is that whether 30000 will be considered as capital profit or revenue profit under AS 21.
please reply as soon as possible
Thanks
so my question is that whether 30000 will be considered as capital profit or revenue profit under AS 21.
please reply as soon as possible
Thanks
14 February 2011
Rs. 30000 is to be treated as balance in premium and capital reserve of subsidiary.
C.A. LINESH PATIL
(Querist)
14 February 2011
u means to say that it would be treated as capital profit.because dividend cant be paid out of these two items
CA Ravi Sisodia
(Expert)
14 February 2011
RS.30000/- will be treated as capital profit, becouse it is a part of share premium and capital reserve account not a part of revenue profit.
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