Trade & Non Trade Investment ??

This query is : Resolved

CA Abhishek Singh (Querist)
Follow

14 February 2011 1.
what is the meaning of trade investment ande non trade investment. In calculation of net assets and FMP for valuation of shares why non trade invesment and income from non trade investments are deducted.

2.
if in the blance sheet on investmetn is given Rs.100000/- then what should we assume whether Trade or Non Trade investment for calculation of Goodwill/shares ?

Urgently waiting for your reply.
My id abhipcc@rediffmail.com

Vishal Sharma

Vishal Sharma (Expert)
Follow

15 February 2011 Trade investment is the investment made for running business i.e only for the purpose of business, not required if particular business does'nt exists.
For example investment in security deposit paid for taking dealership, Purchasing NSC for opening business etc.

On the other hand investment made for earning income otherwise are non trade investment i.e shares, debentures etc. Non trade investments are not compulsary required for business i.e no relation with business.

Unless otherwise specifically given (provided)all the investments in balance sheet are to be considered as non trade investments.

Message likes : 4 times

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Sharang Sanjay Mangalekar

saurabh sawlani

deepak

J.Vijai

Vivekanand Sagar

Subscribe Now

Trade & Non Trade Investment ??

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA