2.2.2 - Basic Terms
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Practice Questions
Test your understanding with targeted questions
What are equity shares?
💡 Hint: Think about what happens to dividends as company profits change.
Define Face Value.
💡 Hint: Consider what you see printed on the stock certificate.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What are equity shares?
💡 Hint: Think about how dividends change based on profits.
True or False: Preference shareholders receive dividends after equity shareholders.
💡 Hint: Consider who gets paid first in business.
2 more questions available
Challenge Problems
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A company issues 1,000 equity shares of ₹100 face value at a premium of ₹20. Calculate the total funds raised and explain the journal entries.
💡 Hint: Remember to calculate the premium and how it affects cash flow.
Illustrate the entries for redeeming ₹50,000 debentures at a 10% premium after 5 years. Explain the importance of redemption reserves.
💡 Hint: Consider the calculations of premium and how it impacts financial records.
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