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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define equity shares?
💡 Hint: Think about how their return is related to company performance.
Question 2
Easy
What does 'issue price' refer to?
💡 Hint: It's not always the same as face value.
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?
- A type of shares with fixed dividend
- A type of shares without fixed dividend
- A loan certificate
💡 Hint: Remember how they reflect ownership in a company.
Question 2
Shares can be issued at which of the following prices?
- Only at par
- Only at premium
- At par
- premium
- or discount
💡 Hint: Think about the different ways a company might raise capital.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A joint stock company issues 5,000 equity shares of ₹20 at a premium of ₹4. Prepare journal entries for application, allotment, and premium amount.
💡 Hint: Break it down into each stage of the share issuance.
Question 2
Discuss the impact on financial statements when a company forfeits shares and later reissues them at a discount.
💡 Hint: Consider the balance sheet and income statement implications.
Challenge and get performance evaluation