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?


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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