Contingent asset

Contingent asset

The assets are contingent because they arise from unexpected events. Contingent assets will not be recognised in financial statements until they are certain.

Onerous Contracts - Ind AS 37

Onerous Contracts - Ind AS 37

If an entity has a contract that is onerous, the present obligation under the contract shall be recognised and measured as a provision. Click to know more.

Bonus issue journal entry

Bonus issue journal entry

Journal entries for the issue of fully paid-up bonus shares. Accounting treatment of bonus issue by converting partly paid shares into fully paid share..

Reserve and Surplus in Balance Sheet

Reserve and Surplus in Balance Sheet

Reserve and surplus are created from undistributed profits for specific purposes. Reserves will be shown under the heading of Shareholders Fund in the balance sheet.

Valuation of Goodwill

Valuation of Goodwill

Goodwill is an intangible asset and its valuation is required in various cases. There are three methods for the valuation of goodwill

Interest on capital

Interest on capital

Interest on Capital is paid by the firm to compensate a partner for contributing capital to the firm in excess of profit sharing ratio. The maximum rate of interest can be 12%.

Securities Premium Account

Securities Premium Account

if the share issue price is higher than face value, the excess amount shall be transferred to a securities premium account. Know more about security premium under companies act