What is meant by issue of debentures as “Purchase Consideration”.

Q: Explain Quitclaim Deed?

A: Quitclaim Deed: Quitclaim Deed is also called as non-warranty deed. A quitclaim deed is considered…

Q: Explain how the obligation for postretirement benefits is measured and how the obligation changes.

A: The answer for this question is given generally as each organisations can following their own…

Q: What entry is made when selling a fixed asset?

A: Following entry is passed when selling the fixed assets:

Q: Would the sale be on an underwritten or bestefforts basis?

A: It is one of the most significant capacities in the money related world wherein an individual or a…

Q: Why should an individual not use an installment sale as opposed to a cash sale?

A: Under the normal method of accounting cash is collected from sale of goods or services and…

Q: What is the estate equity (deficit) in the opening journal entry made by the receiver in its books?

A: Answered:

Q: Describe the Rights of the Surety.

A: A surety is a person or entity that takes on the risk of another party defaulting on their debts or…

Q: What do the financial statements of the acquirer include?

A: In consolidation or merger or acquisition there is an acquirer and an acquiree The acquire purchases…

Q: Explain using practical example how a discount on a debenture is treated ?

A: Let us take an example Divya Ltd. issues Rs. 1, 00,000 debentures on Jan. 1, 2021, at 10 per cent…

Q: How much gain or loss will Bill recognize on the distribution? What is Bill's basis in the inventory…

A: The calculation of gain or loss on distribution and basis in inventory and capital asset is shown…

Q: Explain the term Right of Entry: Lender in Possession?

A: The question is based on the concept of giving right of entry in case of mortgage arrangement in…

Q: Under which head is the ‘Debenture Redemption Reserve’ shown in the Balance Sheet?

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…

Q: What is the effect of loss of the thing or object in a contract of sale?

A: What is the Sale of contract: It is the legal contract between seller and buyer to sale the goods at…

Q: What factors should be considered in determining the issue price of a debenture ?

A: Debentures are the long term debt issued to pursue a new project. Interest paid in debentures are…

Q: Explain Foreclosure property?

A: Foreclosure property means if someone who has lent money to an individual or association so that…

Q: Explain the difference between the legal powers and responsibilities of a reciever and liquidator

A: Receiver is the person who has a duty of manage the assets of a company during a law suit, whereas,…

Q: What is the purpose of a proposed schedule of liquidation, and how is it developed?

A: Partnership: This is the form of business entity that is formed by an agreement, owned and managed…

Q: Explain Transfer of Property or a Beneficial Interest in Borrower?

A: The question is based on the agreement of Mortgage loan in real estate deal.

Q: When intially recognizing the cash surrender value, what is the reason behind the allocation between…

A: Matching Principle Concept-:Matching precept is the accounting belief that compels that the…

Q: What does the term debtor in possession mean?

A: Liquidation of partnership:   Liquidation of partnership is the process of selling all the…

Q: What is the purpose of the accrual tranche?

A: The diverse CMO bunches are known as a tranche. Gathering tranche too known as Z tranche is the…

Q: What is meant by ‘Issue of debenture at discount and redeemable at premium?

A: Bonds:   Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued…

Q: Can someone make the “statement of liquidation?”

A: Answer are as follows

Q: What does issue of debentures for consideration other that cash means?

A: Debenture Issued for consideration other than cash:A company can purchase assets from other…

Q: What does it take for a redemption to be qualified as the results of a partial liquidation?

A: Partial Liquidation: Partial liquidation means a situation that amounts to partial liquidation like…

Q: Why would an investor consider doing an exchange or an installment sale?

A: An installment sale is one way to recover profits according to the General Accounting Principles…

Q: Describe the concepts and valuation principles underlying the acquisition method of accounting for…

A: Acquisition: The acquisition refers to the business combination when one entity or organization…

Q: Explain Property Type Swap?

A: Answer: Swap alludes to exchange with another between the parties involved in one monetary…

Q: What is law of Indemnity? Explain the rights and duties of indemnifier and indemnity holder with…

A: The law of indemnity specifies that a person takes the guarantee of any act of the party that causes…

Q: What is the purpose of a statement of liquidation? What information does it convey to its readers?

A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…

Q: Explain the difference between the specific interest method and the weighted-average method in…

A: Interest capitalization:

Q: explain the main different between acquisition method, interest pooling g method and the purchase…

A: Acquisition is one type of mergers and acquisitions, where pooling-of-interest method and purchase…

Q: What are the arguments for giving separate accountingrecognition to the conversion feature of…

A: The separate accounting for recognition is needed as convertible debenture has the feature of…

Q: Why should a real estate listing contract be in writing and what are the essential elements of a…

A: Real estate contracts refer to legal aggreement between different parties. It is enforceable by law…

Q: What is a lump-sum purchase, and how is it accounted for?

A:

Q: What factors should be consi

A: Debenture   A debenture is a type of debt instrument unsecured by collateral. Since debentures…

Q: Which are the terms and condition on CONTRACT FOR FUTURE DEED?

A: Contract for future deed is an agreement which provides for the finance by the seller for the sale…

Q: Explain the nature of interest on debentures.

A: A fixed amount of money which is paid in the form of interest to the holders of the debentures at…

Q: What is the nature of a sale on consignment?

A: Consignment is a business sale transaction between a consignor and a consignee. Under consignment…

Q: What will be the statement of liquidation?

A: Statement of the liquidation is the statement which is prepared when the business of the company or…

Q: Explain the requirements for the formation of a suretyship relationship.

A: Intrduction : A suretyship arrangement is described as a relationship in which a third person, the…

Q: What are the issues involved in determining if signing a bonus is an asset or an expense?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Does a trust have to have assets? – Explain

A: Meaning of Trust Trusts are one of the major forms of organization for federal tax purposes, along…