2.2.3 - Accounting for Issue of Shares
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Practice Questions
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Define equity shares.
💡 Hint: Think about which type has variable payoffs.
What does face value mean?
💡 Hint: It's what the share is worth according to the company.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What are equity shares?
💡 Hint: Think of the risk involved in profit-sharing.
True or False: Preference shares have higher priority for dividends compared to equity shares.
💡 Hint: Which type gets paid first?
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Challenge Problems
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A company issued 10,000 equity shares of ₹50 and 5,000 preference shares of ₹100 at a price of ₹60 and ₹120, respectively. Calculate the total securities premium.
💡 Hint: Calculate premium per share for both types.
Assuming a company has entered into forfeiture for 1,000 shares with a face value of ₹20, with a reissue at ₹15. What is the maximum discount allowed?
💡 Hint: Think about the limits placed on discounts for reissued shares.
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