Accounting Transactions Quiz

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10 Questions

What will be the journal entry to record the buy-back of shares by Competent Limited?

Debit Bank, Credit Share Capital

How will the buy-back of shares affect the Reserves and Surplus of Competent Limited?

No effect

What is the purpose of creating a Capital Redemption Reserve?

To maintain the capital base after share buy-back

In the balance sheet provided, what is the total amount of Shareholders' funds?

₹440 crores

What is the correct journal entry for the creation of Capital Redemption Reserve to the extent of the equity shares bought back?

Revenue reserve A/c Dr. To Capital Redemption Reserve A/c

What is the purpose of charging premium payable on buy-back from Securities Premium?

To distinguish premium payable specifically for buy-back from other expenses

What is the maximum permissible number of equity shares that can be bought back in Situation I?

80,000 shares

Which account will be debited when recording the buy-back of equity shares?

Capital Redemption Reserve Account

What is the total amount of Reserves and Surplus mentioned in KG Limited's Balance Sheet?

` 810 crore

Which type of account is 'Loan Funds' likely to be in the company's capital structure?

Non-current Liability

Test your knowledge of accounting transactions with this quiz that includes entries related to investments, equity shares, and buy-back transactions. Practice recording journal entries and understanding the purpose behind each transaction.

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