basic accounting principles crossword answers

Average annual net profit after tax of more than Rs.The average annual net worth of more than Rs.Average annual turnover of more than Rs.Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.Power Grid Corporation of India Limited.Hindustan Petroleum Corporation Limited.GAIL (India) Limited (Gas Authority of India Limited).There are 10 Maharatna CPSEs (Central Public Sector Enterprises) currently, namely:.Rural Electrification Corporation Limited.There are 14 Navratna Companies in India:.The correct answer is Bharat Electronics Limited.

Therefore, Gross Receipts Method is NOT a method for calculating or ascertaining the amount of purchase consideration. The resulting figure then divided by the number of existing shares of the transferor company to find out the ratio. It is calculated by dividing the net asset value of the transferor company by the price of one share of the transferee company. This method does not require any calculation as the amount is decided by the mutual consent of both companies.Ĥ. Payment made to the shareholders of the transferor company in form of cash, shares, or debentures.įixed amount paid by the transferee company to the transferor company. The total agreed amount of asset – Total agreed amount of liabilities The purchase consideration is equal to the total net assets of the transferor company.

There are four various methods that can be used in this calculation: It may be in form of cash, shares, or any other assets as agreed between both companies. In the case of amalgamation, purchase consideration is the agreed amount that the transferee company (Purchasing company) pays to the transferor company (Vendor company) in exchange of the ownership of the transferor company. It is used in case of Sales Return, issued by a seller to buyer informing that his account is credited.In other words, it is issued in any scenario that would require the invoice to be changed or re-issued.A credit note is a document used when there has been an error in an already issued invoice, such as when a customer wishes to change their original order or an incorrect amount.It is used in case of Purchase Returns, escalation/de-escalation in price, any other expenses incurred by the vendor on behalf of the party.It can provide information regarding an upcoming invoice or can serve as a reminder for funds currently due.A debit note is a document used by a vendor to inform the buyer of current debt obligations.Therefore, options B and A are only related to the vouching of sales. The document of dispatch clarifies that the goods have been transported or dispatched under the conditions specified.Īn auditor verifies and vouches for both the Sales Book and Dispatch of goods documents to check that they support the entries made in them and the inventory is maintained accordingly or not.The term 'lead time' can be used to refer to the time elapsed between order and dispatch of goods.Dispatching of goods refers to an act of sending goods to a particular place which is undertaken by a logistic unit.When the goods are sold, invoices are sent out and that only becomes the source document or voucher for recording transactions in the sales book.Sales book records only credit sales of goods to the customer.It typically serves as proof of purchase when a provider must order or deliver the goods at a later point. While vouching, and the auditor is looking for any errors in the amount recorded in the accounting records, as well as ensuring that the transactions are recorded in the correct accounts.Ī sales voucher is a form of a receipt or documentation commonly given to a buyer of supplies or goods. Vouching refers to reviewing documentary evidence to see if it properly supports entries made in the accounting records.

Basic accounting principles crossword answers