Company accounts - I
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the primary legislation governing company accounts in India?
The Companies Act, 2013 governs the preparation, presentation, and audit of company accounts in India, replacing the earlier Companies Act, 1956.
What is the face value of a share also known as?
Face value is also called par value or nominal value.
What is a share in the context of company accounts?
A share is the smallest unit into which a company's capital is divided, representing ownership interest and carrying rights to dividends and voting.
What is meant by 'calls in advance' in company accounts?
Money received from shareholders before calls are actually made.
What is meant by 'authorised share capital'?
Authorised share capital is the maximum amount of share capital that a company is legally permitted to issue, as stated in its Memorandum of Association.
What is the rate of interest paid on calls in advance under the Companies Act, 2013?
Maximum 12% per annum on calls in advance.
What is 'issued capital' of a company?
Issued capital is that part of authorised capital which has been offered to the public or existing shareholders for subscription.
What is the rate of interest charged on calls in arrears under the Companies Act, 2013?
Maximum 10% per annum on calls in arrears.
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