TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8: TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 PDF can be downloaded from the links provided below. Now, at the time of preparation you don’t need to rush over the pages in order to download the Class 12 Chapter 8 Accountancy Vol 2 Solutions. Just with a single click you have detailed solutions with you.
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TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8
TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 – Detailed Topics
A joint-stock company is an artificial person, created by law, having a separate entity distinct from its members with perpetual succession and a common seal.
Characteristics or features of Company:-
- Artificial person
- Voluntary association
- Created by law
- Capital divisible into transferable shares
- Limited liability
- Perpetual succession
- Common seal
- The separate legal entity from its members
- May sue or be sued
Kinds of Companies:-
- Private Company
- Public company
Types Share of shares:-
- Preference share
- Equity share
Kinds of Share Capital:-
Share capital is that part of the capital of a company, which is represented by the total Nominal value of shares, which it has issued.
- Authorized Share Capital
- Issued capital
- Subscribed and fully paid-up shares
- Subscribed but not fully paid-up shares
- Reserve Capital
- Capital Reserve
- Minimum subscription
TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 – Sample Questions
In this section, the students will get TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 Sample Questions along with answers.
Q1. Define Company. What are the essential characteristics of a company?
A. According to section 2(20) of the Companies Act, 2013, “Companies means a company incorporated under this Act or any previous Companies Act.” A company is an artificial person created by the process of law, having a separate entity with perpetual succession. It may or may not have a common seal. The essential characteristics of a company are:-
- Incorporation- A company is an official person created through the process of law, i.e. the companies act either under the present Companies Act, 2013 or under any previous Companies Act.
- Separate Legal Entity:- A company is an artificial person having a legal entity separate from its Shareholders.
- Artificial Person:- In the eyes of law it is an artificial person. It can own property, enter into contact, conduct business, sue, or be sued for its debts and actions.
Q2. Explain the term Preference Share. What is meant by Cumulative Preference Share?
A. Preference share are those shares that carry the following two rights in preference to Equity shares:
- As regards divided, they have a preferential right of dividend to be paid as a fixed amount or an amount calculated at a fixed rate, which may either be free of or subject to income tax, and
- As regards capital, in the event of winding up, they have a preferential right to be repaid the capital before it is repaired to Equity shareholders.
Cumulative Preference Share is those Preference share that carries the right to receive arrears of dividend before the dividend is paid to the Equity Shareholders.
Q3. Give the meaning of Forfeiture of Shares. At the time of Forfeiture of shares, with what amount the Forfeited Share Account is credited?
A. If a Shareholder fails to pay any call made on him, which is due on shares, the company may cancel his shares. The cancellation of shares for non-payment of non-payment of amount due on shares is known as Forfeiture of shares.
Forfeited shares become the property of the company and the company can reissue them at par, at a premium, or at a discount. However, the discount cannot exceed the amount forfeited.
We have included complete information regarding CBSE TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 – Accounting for Share Capital. If you have any questions feel free to ask in the comment section.
FAQ: TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 – Accounting for Share Capital
How do you record share capital in accounting?
Ordinary Share Capital represents the equity of a company and therefore its issuance is recorded as part of the equity reserves in the balance sheet.
What are the types of share capital?
The two types of share capital are common stock and preferred stock. Companies that issue ownership shares in exchange for capital are called joint stock companies.
What are the two methods of accounting for share capital?
There are two methods of accounting for treasury stock transactions, namely: (1) par or stated value method and (2) cost method.
What are the advantages of share capital?
Advantages of share capital include: Share capital is a source of permanent capital – Shareholders cannot have a refund on their shares. Instead, if they want to sell their shares, they must find someone else to sell them to.