Practice Accounting for Issue of Shares - 2.2.3 | Chapter 2: Joint Stock Company Accounts | ICSE Class 12 Accounts
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define equity shares.

πŸ’‘ Hint: Think about which type has variable payoffs.

Question 2

Easy

What does face value mean?

πŸ’‘ Hint: It's what the share is worth according to the company.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What are equity shares?

  • Shares with fixed dividends
  • Shares without fixed dividends
  • Loans given by a company

πŸ’‘ Hint: Think of the risk involved in profit-sharing.

Question 2

True or False: Preference shares have higher priority for dividends compared to equity shares.

  • True
  • False

πŸ’‘ Hint: Which type gets paid first?

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company issued 10,000 equity shares of β‚Ή50 and 5,000 preference shares of β‚Ή100 at a price of β‚Ή60 and β‚Ή120, respectively. Calculate the total securities premium.

πŸ’‘ Hint: Calculate premium per share for both types.

Question 2

Assuming a company has entered into forfeiture for 1,000 shares with a face value of β‚Ή20, with a reissue at β‚Ή15. What is the maximum discount allowed?

πŸ’‘ Hint: Think about the limits placed on discounts for reissued shares.

Challenge and get performance evaluation