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AT THE TIME OF REDEMPTION OF DEBENTURES.
WHEN THERE IS PROFIT/LOSS ON SALE OF DEBENTURES WE TRANSFER
THAT AMOUNT IN PROFIT AND LOSS A/C BUT WHEN WE CANCEL OUR
DEBENTURES AFTER BUYING IT FROM OPEN MARKET THE DIFFERENCE
BETWEEN MARKET VALUE AND COST OF DEBENTURES TRANSFER TO
"CAPITAL RESERVE ACCOUNT .. WHY SO ANY PRACTICAL ANSWER ??
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wat is the meaning of bank and what role does bank play in insurance sector?
1 Answers State Bank Of India SBI,
please answer this question.the following balances were extracted from the books of modern traders on 31st dec,2010.capital(85000)fixed assets(45000)stock1-1-2010(15000)sundry debtors(20600)productive exp(3300)reserves fund(6600)discount received(800)cash in hand(6200)drawing(5000)accomulated dep.(9000)purchases(82000)bad debts(400)unproductive exp.(27400)sundry creditors(9000)sales(120000)cash at bank(25500).adjustments.stock on 31-12-2010(15000).outstanding wages (5000) write-off (600)of further bad debts. create provision for bad & doubtful debts at {5%) on debtors.unproductive expenses includes anitem of prepaid insurance (100).provide depreciation on original cost of fixed assets @ (10%).
book building
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