JAIIB · AFM

Company accounts - I

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.

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One-liners from this chapter

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Q

What is the primary legislation governing company accounts in India?

A

The Companies Act, 2013 governs the preparation, presentation, and audit of company accounts in India, replacing the earlier Companies Act, 1956.

Q

What is the face value of a share also known as?

A

Face value is also called par value or nominal value.

Q

What is a share in the context of company accounts?

A

A share is the smallest unit into which a company's capital is divided, representing ownership interest and carrying rights to dividends and voting.

Q

What is meant by 'calls in advance' in company accounts?

A

Money received from shareholders before calls are actually made.

Q

What is meant by 'authorised share capital'?

A

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.

Q

What is the rate of interest paid on calls in advance under the Companies Act, 2013?

A

Maximum 12% per annum on calls in advance.

Q

What is 'issued capital' of a company?

A

Issued capital is that part of authorised capital which has been offered to the public or existing shareholders for subscription.

Q

What is the rate of interest charged on calls in arrears under the Companies Act, 2013?

A

Maximum 10% per annum on calls in arrears.

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