cost accounting

Cost Accounts 2331 views 6 replies

Ranjita

34 Points Joined February 2011

I want answers for some questions

State wether true ar false with reasons

1) A company cannot purchase its own equity shares.

2) Interium dividend is declared after the closure of the accounting year, but before the annual general meeting of the shareholders is held.

3) As per accounting standard investment classified as long -term investment should be carried in the financial statement at lower of cost or fair value.

4) An underwrite while entering into the contract for issue of shares should be a company.

5) intrest on debenture is paybale only when there is profit.

Plzzzzz send me answers for all dis questions. its my request.

Replies (6)

Ranjita

34 Points Joined February 2011

plz give me answer its urgent

avinash

CA CS

54 Points Joined July 2010

For query no. 1 - False - company can do buyback of shares

For query no. 3- False - Long term investment should be on market value at the EOY

for query no. 4- False - Underwriting can be done by an firm

for query no. 5 - False - Interest on debenture is payable in case of loss also.

Ranjita

34 Points Joined February 2011

Thnx avinash thnx a lot

ashoka r d

senior audit assistant

82 Points Joined January 2011

sorry friend the long-tem investments should be carried at cost only

ashoka r d

senior audit assistant

82 Points Joined January 2011

5. interest on debentures: debenture is a debt for that the interest has to be payable whether the company makes profit or not. it is not like equity share. you better to read the subject deeply

CMA. Dinesh S Adhikari, ACMA

Cost & Management Accountant

1257 Points Joined August 2008

Hello Friends,

Please note answers for

Query #1 :- Company cannot purchase its own shares, is correct. However, Avinash told about 'BUYBACK', which is different from purchasing own shares. Therefore, Query #1 is TRUE.

Query #2 :- FALSE, Interim Dividend declared & paid during the accounting year only. After closing of Accounting year the dividend proposed by directers is final dividend, which require approval of share holders.