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Management accounting

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Querist : Anonymous

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Querist : Anonymous (Querist)
07 February 2011 kindly answer the following statements are true or false.
1.premium payable on redemption of preference shares must be debited to securities premium account only.
2.dividend can be declared bya company after providing only for current year's depreciation
3.interest cannot be paid out of capital during construction period
4. bonus shares issued out of pre-acquisition profits by the subsidiary company will have no effect on the cost of control while prepapring consolidated balance sheet
5.sinking fund is created in those cases where debentures are to be redeemed in instalments
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
07 February 2011 1.False

2.true

3.false

4.false

5. true
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