LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

doubt

M.PORNIMA (Coimbatore) (278 Points)

15 December 2009

Dear Pals,

Is forward contract in any ways related to clearing and forwarding business?

Reply
Follow
Share

7 Replies

Dinesh N (Article) (156 Points)
Replied 15 December 2009

Forward Contract is not at all related to clearing & forwarding contract.

Forward Contract takes place in case of purchase & sale of Shares & foreign currency.

1 Like

Jag Bhushan Sharma (Faculty in a B-School) (633 Points)
Replied 15 December 2009

Mr. Dinesh is absolutely right. Forward contracts are made for sale/purchase anything i.e. shares, commodities, currency and interest rates ans so on on some future date at predetermined price. But these contracts are not conducted on any organised exchanges.

2 Like

M.PORNIMA (Coimbatore) (278 Points)
Replied 17 December 2009

Thankyou pals for giving me a clear cut idea about the forward contract.

M.PORNIMA (Coimbatore) (278 Points)
Replied 01 January 2010

Hello jad bushan sharma sir,

i have attached a problm reg accounts pls find me a solution for that problem.

Jag Bhushan Sharma (Faculty in a B-School) (633 Points)
Replied 02 January 2010

There is no attachment with your message. Pl. recheck and send the attachment.

pavithra doss (student) (234 Points)
Replied 03 January 2010

they are like cheese and chalk.....

Jag Bhushan Sharma (Faculty in a B-School) (633 Points)
Replied 04 January 2010

Pornimaji, find Solution to your question.

Capital A/c s of M/s Ram Rahim as on 31-12-2008

(Amt. in Rupees)

Particulars Suresh Ram Rahim Suresh Ram Rahim

To Motor Vehicle A/c		12000		By Bal. b/f		54300	48000
To Goodwill A/c	6667		13666	By Goodwill A/c		2500	2500
To Suresh Capital A/c		31477		By Revaluation A/c		4140	4140
To Cash A/c		24130		By Cash A/c			14980
To Balance c/f	24810		41307	By Ram A/c	31477
Total	31477	60940	54640	Total	31477	60940	54640

Balance Sheet of M/s Rahim and Suresh as on 31-12-2008

(Amt. in Rupees)

Particulars Amount Particulars Amount

Sundry Creditors A/c 14700	Land and Building A/c 48330
Rahim’s Capital A/c 49620	Furniture A/c 9300
Sursh’s Capital A/c 24810	Sundry Debtors 24150
	Cash A/c 7350
Total 89130	Total 89130

Working Notes:

Capital of the firm at the time of retirement of Ram is Rs.103580 (Rs.48940 of Ram and Rs.54640 of Rahim).
Since the new partners Rahim and Suresh do not want to show goodwill in books, the capital of the new firm will reduce by Rs.20000/-
They want to keep Rs.7350 with them, this means that they want to utilize Rs9150 (16500-7350) towards making payment to Ram, hence want to reduce the capital of new firm by another Rs.9150. So the capital of new firm will be Rs.74430 (103580-20000-9150) shared by Rahim and Suresh in the ratio 3:1 (49620 and 24810).
Ram will gift Suresh Rs.24810 for capital and Rs.6667 for goodwill.
Capital A/c s of M/s Ram Rahim as on 31-12-2008