Class 12 NCERT Solutions for Accountancy Chapter 1 Accounting for Share Capital Free PDF Download
FAQs on NCERT Solutions for Class 12 Accountancy Chapter 1 - Accounting For Share Capital
1. What Are Preference Shares? Mention the Type of Preference Shares?
Preference shares are offers which qualify the holder to get profit. It is furthermore the option to get capital and put resources into the request of inclination before value investors when the organization is winding up. There are eight types of preference shares.
Cumulative and Non-cumulative Preference shares deliver profit before value investors are paid and those which are paid from profit. Partaking and non-partaking inclination shares are those shares which offer overflow benefits to the investors and those that don't. Convertible and non- convertible Preference Shares are those which can be changed to value shares and those which can respectively. Redeemable Preference Shares are those shares which can be repaid to the investor after a given time. Ensured Preference Shares are the ones that earn a fixed profit every year.
2. What Are the Provisions for Calls in Arrears?
Suppose a financial investor neglects to pay all the portions for the allocated shares in due time. In that case, the organization anticipates that the speculator should pay the sum on resulting calls or stages. The measure of cash that is paid at later stages is called Call-falling behind financially. The organization is approved by its Article of Association for charging an enthusiasm at a predefined rate on the bring falling behind financial sum from the due date till the date of the instalment. When the Article of Association doesn't make reference to or is quiet about such a case, a 5% charge is collected. The sum is deducted from called up share capital on the liabilities side of the Balance Sheet. When the due sum isn't paid, the offers can be relinquished with legitimate notification to investors.
3. What are the concepts covered in Chapter 1 of Class 12 Accountancy?
Chapter 1 is about accounting for share capital and covers a whole lot of topics. NCERT Solutions make these concepts easier for students because of their simple and legible structure enabling students to score well for their exams. The following points outline the concepts covered in the chapter:
Features or characteristics of a company
Different types of companies
Classes and types of shares
Treatment of issue shares in accounting
Treatment of issue shares in accounting for cash
4. What are the characteristics of a company?
A company is an artificial body that has been created by law such that it has a separate entity with a common seal and perpetual succession. As such, Chapter 1 outlines various characteristics that a company has in Class 12. The following points list out the characteristics of a company:
Artificial body
Voluntary involvement
Created by law
Divisible capital into transferable shares
Liability is limited
Perpetual succession
Common seal
Separate entity
Maybe sued or may not be sued
5. What are the most important definitions in Chapter 1 of Class 12 Accountancy?
'Accounting for Share Capital' is the first Chapter In Class 12 of Accountancy where students are introduced to concepts of companies, shares, etc. Therefore, this chapter is a rich source of definitions usually asked in the board exams.
Capital
Share capital, Authorised, Issued, Called up, Paid-up, and Reserve Capital
Equity Share and Preference Share
Under and over Subscription
Calls in arrear and advance
Forfeit of shares
Using NCERT Solutions can be helpful for students in learning all these definitions.
6. Which are the different types of shares mentioned in Chapter 1?
Students are introduced to two different types of shares in Chapter 1 of Class 12 Accountancy, namely Preference Shares and Equity Shares.
Preference shares are those shares that have preferential rights. They are of different types: cumulative and non-cumulative, participating and non-participating, convertible and non-convertible, redeemable and irredeemable preference shares.
An equity share is an ordinary share where each member is an owner.
Chapter 1 of NCERT Solutions elaborates all these concepts for students to easily learn and score well.
7. How are NCERT Solutions useful for learning Chapter 1 of Class 12 Accountancy?
Accountancy as a subject is very difficult irrespective of the chapter that students are learning. For chapter 1, NCERT Solutions provided by Vedantu can prove to be the optimum choice for students because these Solutions help students write answers properly as they are expertly created. Other than this, the material provides concept clarity, a revised syllabus, topic-wise weightage, and 100 percent accuracy. The PDF format allows easy portability for quick reference. All these benefits of Chapter 1 of Class 12 Accountancy can be accessed here through the NCERT Solutions for Class 12 Accountancy Chapter 1.