Company: Conceptual and Theoretical Foundation BBS
- What do you mean by subscribed capital?
- What do you mean by share capital?
- Write any two difference between Equity share and Preference share.
- Explain the advantages of public limited company.
Descriptive Answer Questions
- Clarify the meaning of preference share and mention any two difference between preference share and equity share.
- Differentiate between equity share and debenture.
- Write in brief about the equity share.
- Define preference share capital and write about the different types of preference share capital.
Analytical/ Long Answer Questions:
- Differentiate between public company and private company.
- Explain the meaning and types of public limited company.
- Explain the necessary documents which must be submitted by public company to have a company registration.
- Write briefly about preference share and differentiate it with common share.
Financial Statements of a Company
Brief Answer Questions
- Write in brief the objectives of work sheet.
- Write in brief the objectives of financial statements.
- Differentiate between holding gain and operating gain.
- Write any two features of financial statements of a company.
- Differentiate between operating and non-operating expenses with example.
Descriptive Answer Questions
- The following are the income statement and the balance sheet at the end of the last year:
|Income statement Rs. Rs.|
Less: Cost of goods sold:
Closing stock (50,000) 150,000
Gross profit 250,000
Add: Discount secured 10,000
Less: Operating and other expenses:
Prepaid rent (2,000)
Discount allowed 5,000
Depreciation on furniture (10% of Rs. 120,000) 12,000
Interest on loan 6,000
Outstanding interest on loan 4,000 115,000
|Net profit 145,000|
|Liabilities Rs. Assets Rs.|
|Share capital 500,000 Furniture 120,000
Net Profit 145,000 Less: Depreciation 12,000
10% Bank loan 100,000 108,000
Creditors 50,000 Debtors 85,000
Outstanding interest 4,000 Closing stock 50,000
Prepaid rent 2,000
Analytical/ Long Answer Questions
7. Trial balance of a company is given below:
|Particulars Debit (Rs.) Credit (Rs.)|
Share capital 500,000
8% debentures 150,000
Electricity charges 16,000
a. Closing inventory is Rs.60,000
b. Depreciation is 10% on machinery and 15% on furniture.
c. Outstanding salary is Rs.12,000.
d. Prepaid wages is Rs.15,000.
Required: (1) Income Statement and Balance Sheet using worksheet (2) Cash flow statement
8. The ledger balances of newly established business co. are given below:
|Capital Rs.400,000 Interest on loan Rs.5,000
10% loan 200,000 Discount allowed 3,000
Fixed assets 200,000 Salaries 72,000
Purchase 250,000 Office expenses 30,000
Sales 400,000 Rent 50,000
Debtors 20,000 Cash at bank 420,000
a. Closing stock Rs.50,000.
b. Prepaid rent Rs.2,000.
c. Interest on loan payable for half year.
d. Charge depreciation of fixed assets @ 10% p.a.
Required: (1) Income statement and Balance sheet using worksheet (2) Cash flow statement.
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