Cpt

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2011
1.sell goods @ cost plus 40% total sales were RS 21000 cost price of goods will be?

2.1.why co's create CRR ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

30 October 2011 1) Let cost is 100. So sales (100+40)=140

So cost price of sales of Rs 21000

=(21000/140*100)=15000

Now see again---
Cost = Rs 15000/-
Profit =(40% of 15000)=6000

So Sales =(15000+6000) = Rs 21000/-

2)
When shares are redeemed out of profits a sum equal to nominal amount of shares redeemed is to be transferred out of profits to the capital redemption reserve account. This amount should then be utilised for the purpose of redemption of redeemable preference shares. This reserve can be used to issue of fully paid bonus shares to the members of the company.

Where a company purchases its own shares out of free reserves, then a sum equal to the nominal value of the share so purchased shall be transferred to the capital redemption reserve account and details of such transfer shall be disclosed in the balance sheet.

Message likes : 2 times

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2011 thanxxxxxx
sir
GN SD

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok