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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 dividends relate to company performance.
Question 2
Easy
What is face value?
💡 Hint: What is the set value when shares are issued?
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 is the face value of a share?
- The market price
- The original value
- The selling price
💡 Hint: Think of what the share is worth when it’s first created.
Question 2
True or False: Preference shares provide a variable dividend.
- True
- False
💡 Hint: Consider how dividends are defined for different types of shares.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company issues 200 equity shares with a face value of ₹50 at par. Calculate the total funds raised from this issue and describe how this amount will be recorded in the Share Capital account.
💡 Hint: Multiply the number of shares by their face value for total calculation.
Question 2
If a company issues 100 preference shares at a premium of ₹5, what is the issue price per share, and how is the accounting entry different from when issued at par?
💡 Hint: Don’t forget to include the premium as part of the total price.
Challenge and get performance evaluation