Accounting for Companies: Shares of Partners
26 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the first chapter covered in the 'Shares of Partners' section in 'Accounting for Companies'?

  • Bak Derivatives
  • Subscription to Shares
  • Dissolution of Partnership (correct)
  • Redemption of Partnership

    • What document is mentioned in the text as an important one for a company?

  • Partnership Agreement
  • Articles of Incorporation
  • Share Certificate
  • Memorandum of Association (MOA) (correct)

    • What does the text suggest about the company's capital regeneration?

  • The capital will decrease over time
  • The capital will not be regenerated
  • The capital will remain constant
  • The capital will increase over time (correct)

    • If a company has a capital of ₹10 lakhs and decides to offer 1 lakh shares at ₹1 each, how many shares would be offered in total?

    <p>1 lakh shares</p> Signup and view all the answers

    What is the minimum subscription required in this scenario?

    <p>90%</p> Signup and view all the answers

    What determines the allocation of shares to the first 10% of applicants?

    <p>First call</p> Signup and view all the answers

    How many shares has Ishyudo Capital offered to only 15 children despite having 20 seats?

    <p>15,000</p> Signup and view all the answers

    What happens if less than 90% of the shares are bought?

    <p>The remaining shares cannot be sold</p> Signup and view all the answers

    What is the order of allocation determined by in the application process for the shares?

    <p>First entry</p> Signup and view all the answers

    How is the transaction completed when buying shares?

    <p>Bank account debits made to the capital account</p> Signup and view all the answers

    Which statement is true about the Consumption function?

    <p>Consumption changes at a constant rate as income changes.</p> Signup and view all the answers

    In a closed economy with no foreign trade, what relationship holds true between GDP and GNP?

    <p>GDP = GNP</p> Signup and view all the answers

    The value of what can be greater than one?

    <p>Marginal Propensity to Consume</p> Signup and view all the answers

    Which variable can be calculated by dividing total consumption by total income?

    <p>Average Propensity to Save</p> Signup and view all the answers

    In the given alternatives, which one correctly fills in the blanks to obtain the Aggregate Demand function graphically by vertically adding two functions?

    <p>consumption, investment</p> Signup and view all the answers

    Which reasons may affect the demand for foreign exchange in an economy based on the text?

    <p>Imports of visibles and Purchase of assets abroad</p> Signup and view all the answers

    For the given economy with S= -60 + 0.1Y and I= ₹4,000 crore, what would be the equilibrium level of Income in crore?

    <p>40,600</p> Signup and view all the answers

    What type of investment is shown under 'Capital Account' in the chart provided?

    <p>Portfolio Investment</p> Signup and view all the answers

    In the context of the Reserve Bank of India's report, the mentioned transaction will be recorded in the _______ account on ______ side of Balance of Payments account of India.

    <p>current, debit</p> Signup and view all the answers

    Based on the statement 'The value of all goods and services can be expressed in monetary units', what function is being performed by money?

    <p>Unit of account</p> Signup and view all the answers

    What is the missing value for 'Loans' in the second case scenario provided?

    <p>$600</p> Signup and view all the answers

    Which concept refers to the proportion of additional income that an individual consumes rather than saves?

    <p>Marginal Propensity to Consume</p> Signup and view all the answers

    What was the key factor leading to the Green Revolution that broke the shackles of agriculture during colonial rule?

    <p>High Yielding Varieties (HYV)</p> Signup and view all the answers

    In the context of rural households engaging in bee-keeping as an entrepreneurial activity, what type of diversification activity does it fall under?

    <p>Animal husbandry</p> Signup and view all the answers

    Why was the rupee devalued against foreign currencies in 1991 during a Balance of Payments crisis according to the given assertion and reason?

    <p>Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)</p> Signup and view all the answers

    What impact did the Green Revolution have on agriculture during colonial rule?

    <p>Strengthened the agricultural sector</p> Signup and view all the answers

    Study Notes

    • WhatsApp is starting a new channel called "Bak to the Channel" for accounting for companies and accounting for companies' first chapter is "Shares of Partners"
    • In this chapter, the discussion revolves around a partnership where two partners, Disolution of Partnership, and Redemption of Partnership are covered
    • The text mentions a board of directors, which could be a Cessboard or a Maximam Board
    • The board of directors, in turn, has two chapters covered: Bat Derivatives and Subscription to Shares
    • Other types of capital include Other's Capital and Common Stockholders' Equity
    • Shares of Capital refers to the capital that the company has raised through the issuance of shares
    • The company's capital is expected to regenerate (reinvested) and the company's life-time capital will depend on its capital turnover rate
    • The text mentions a memorandum of association (MOA) which is an important document for a company
    • If the company's capital is ₹10 lakhs, the owner would offer 10 lakh shares at ₹1 each
    • The Capacity of the company would be ₹10 lakhs, and the company would issue shares up to the specified amount
    • The company might decide to offer shares in small quantities instead of one go
    • In 2023, the company announced it would offer 1 lakh shares and gave a call to purchase 5 shares, 10 shares, 20 shares, etc.
    • The number of shares a person wants to buy can be multiplied to determine the total number of shares that would be purchased
    • The company can demand more shares if required, or if it wants to raise more capital.
    • The company is offering 1 lakh shares and making an offer to the market to purchase these shares
    • The text mentions the classrooms where this text is being read and there are 20 seats in the classrooms.
    • The text is being read from one of these seats and the person is reporting that 20 seats are being offered for sale.- Ishyudo Capital is a company that has offered shares to only 15 children to read for a class of 20, despite 20 seats being available
    • The class has 20 seats, and only 15 children have come to read
    • The class requires full subscription for a certain respect, and 1 lakh shares have been sold for 1 lakh rupees each
    • 20,000 shares have been sold, but not all of them have been bought in full
    • Minimum subscription is required to be 90%, meaning 90% of the shares offered must be bought
    • If less than 90% of the shares are bought, the remaining shares cannot be sold, and the investor must return their money
    • The price of one share is ₹1, and the company has demanded 1.2 lakh, 1.3 lakh, and 1.5 lakh shares from various investors
    • To buy the shares, an application process is required, and the first entry is crucial as it determines the order of allocation
    • Bank account debits are made to the capital account to complete the transaction
    • The application process for the shares is competitive and requires bidding for the shares, with the first call, second call, and final call determining the allocation order
    • The company has a policy of not accepting bids for shares in excess of the required amount
    • The shares have been offered in three categories: application, allotment, and final call
    • The first call determines the allocation of shares to the first 10% of applicants, the second call determines the allocation to the next 20%, and the final call determines the allocation to the remaining 70%
    • The first entry in Class 11 was made when someone deposited money into a business, and the first entry was crucial as it determined the order of allocation
    • If someone deposits money into a business, the first entry is crucial as it determines the order of allocation, with the capital account debited and the account credited accordingly
    • The shares were sold in large quantities, with one lot of 1 lakh shares, another lot of 20,000 shares through allotment, 30,000 shares through the first call, and 40,000 shares through the second call.- The text describes various financial transactions related to share applications and allotments.
    • A second hand share final call worth lakhs can mean 40-30-70-20-90 or one crore depending on the context.
    • One lakh share application can lead to multiple entries including bank account debits and share application account debits.
    • A bank account debt to share application account can be transferred to the share capital account.
    • The first call can be a large amount, but the specifics of the transactions are not mentioned.
    • The first call can lead to multiple entries, and the final call can also have multiple entries.
    • Bank to capital transactions can occur multiple times, totaling 10 lakhs, 20 lakhs, 30 lakhs, and 40 lakhs.
    • The bank to capital transaction can represent one large transaction of one crore, but the specifics of the application and allotment processes are not clear.
    • The text mentions the need to understand applications, allotments, and transactions for effective utilization of the video.
    • The next class will cover more concepts and practical applications, and comments are encouraged to clarify any difficulties in understanding the shares and transactions.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    This quiz covers the first chapter of 'Accounting for Companies' which discusses partnership shares, dissolution, redemption, and types of capital like common stockholders' equity. Topics include share issuance, memorandum of association, share applications, allotments, and bank to capital transactions.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser