 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Deep discount debenture (DDD)
A ltd purchased 0% DDD of Rs.25,00,000/- (maturity period 20 years) at Rs. 250,000/-. Company is not accounting for accrued income as per policy consistently followed by it and intends to account for either at the time of redemption or when its right to receive is actually established (i.e. either on receipt of TDS certificate or notice of early exit option etc). By following this policy the company is avoiding MAT but is in contravention of AS-1 (accrual basis of accounting). Please advice whether Notes on account is sufficient (disclosing consistent policy of company) or auditors is inclined to qualify the AS-1 violation in his report ?
|
||||
|
||||
|
Thank you for taking the time to copy your homework to AMHD.
Please refer to this announcement: https://www.askmehelpdesk.com/financ...-b-u-font.html |
||||
Not your question?
Ask your question
View similar questions
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
Journal entries for Deep discount bond
[ 7 Answers ]
Suppose deep discount bond purchased for Rs.1000 and at maturity after 10 years we received Rs 1500. We have booked difference amount of Rs1500-Rs1000 = Rs500 as interest accrued but not due for 10 years. Now after 5 years prematured at Rs 800. So we have loss of Rs.250 in interest already...
How to calculate cost of debenture
[ 1 Answers ]
a company issues new debenture of rs. 2 million at per the net proceeds being rs. 1.8 million it has a 13.5% rate of interest and 7 year maturity. The company' tax rate is 52%. What is the cost of debenture issue? What will be cost in 4 years if market value of debentures at that time is rs. 2.2...
View more questions Search
|
