Class 12th accounts short types question
With the help of these NCERT Solutions you can easily grasp basic concepts better and faster.
Accounts Short type Questions and Answers
1. Differentiate between Revaluation and Realization account
Ans.
|
Revaluation Account |
Realisation Account |
|
It is prepared to show assets and liabilities in the books at their revised values. liabilities in the books at their revised values. liabilities in the books at their revised values. It is prepared at the time of change in profit sharing ratio among the existing partner, admission, retirement and death of a partner. This account may be prepared at a number of times during the life of a firm. This account records only those assets and liabilities whose book values have been changed
|
·
It is prepared to ascertain profit or loss on sale
of assets and repayment of Liabilities.
|
2. What
is share capital?
Ans:
The share capital of the company's means capital raised by a company by issue
of shares. The amounts invested by the shareholders, towards face value of
shares are collectively known as share capital.
3. List any three objectives of financial
statements.
Ans: The following were the main objectives
of Financial Statement Analysis.
a) To measure the Profitability or Earning Capacity of the business.
b) To measure the Financial Strength of the business.
c) To make Comparative Study within the firm and with other forms.
d) To judge the Efficiency of Management.
4. Give the meaning of 'partly' and 'fully'
convertible debentures.
Ans: Partly Convertible Debentures
(PCD): A part of these instruments are converted into Equity shares in the
future at notice of the issuer. The issuer decides the ratio for conversion.
This is normally decided at the time of subscription.
Fully convertible Debentures (FCD): These are fully convertible into
Equity shares at the issuer's notice. The ratio of conversion is decided by the
issuer. Upon conversion the investors enjoy the same status as ordinary
shareholders of the company.
5. Name the methods of Redemption of
Debentures?
Ans: The following is the main sources of
redemption of debenture:
(a) Proceeds from fresh issue of share capital or debenture holders,
(b) From accumulated profits.
(c) Proceeds from sale of fixed assets.
(d) A company may purchase its own debentures out of its surplus
funds.
6.
Differentiate
between preference shares and equity share
Ans: Following were the main point of
distinguished Preference shares and Equity shares
|
Preference
Share |
Equity
Share |
|
· Dividend is
paid on preference shares before it is paid on equity. · Rate of
dividend is fixed. · It can be
convertible into equity shares · It may be
redeemed |
· Dividend is
paid on equity shares after it is paid on preference shares ·
Rate of
dividend is not fixed. ·
It cannot be
convertible · It may buy
back its equity shares |
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