2.6 - Chapter Summary
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Practice Questions
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What is the difference between equity shares and preference shares?
💡 Hint: Reflect on the dividend structures.
Define a debenture.
💡 Hint: Think about how companies borrow capital.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What type of share guarantees fixed dividends?
💡 Hint: Think about the dividend structures of each type.
True or false: Debentures are always secured.
💡 Hint: Recall the classifications of debentures.
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Challenge Problems
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A company issued 2000 shares with a face value of ₹10 at a premium of ₹3. Calculate the total proceeds from the issuance and prepare the relevant journal entries.
💡 Hint: Remember the pricing components in issuing shares.
A company wants to redeem ₹50,000 worth of debentures at a premium of 5%. Calculate the total amount payable and prepare the journal entries involved.
💡 Hint: Consider both the nominal value and the premium percentage.
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