The assets are contingent because they arise from unexpected events. Contingent assets will not be recognised in financial statements until they are certain.
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.
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 are created from undistributed profits for specific purposes. Reserves will be shown under the heading of Shareholders Fund in the balance sheet.
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 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%.
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