① what is Forfeiture of shares?
1) Forfeiture of shares occurs when a shareholder fails to meet payment obligations, leading to the cancellation of their shares.
② what is Revalution account?
A Revaluation Account is used to adjust the book value of assets and liabilities during a company's revaluation of its assets.
3)Pass the Jounal Entry when a new partner fails to bering Premium For good will
Journal Entry: Debit New Partner's Capital Account for the Premium for Goodwill; Credit Old Partners' Capital Accounts in sacrificing ratio.
4)what is the formula for determining the Sacrificing Ratio?
Sacrificing Ratio = Old Ratio - New Ratio.
5)What is minimum Subscription?
Minimum Subscription is the minimum percentage of the total subscription that a company must receive before it can allot shares.
6)What is call- in Arrear?
Call-in-Arrear refers to the unpaid amount on a call, which a shareholder fails to pay within the specified period
7)What is Prospectus?
A Prospectus is a legal document issued by a company inviting the public to buy its shares or debentures.
8 ) P and Q are Partners Sharing profit&loss in the Ratio 3:2 .P surrenders 1/4th of his Share and Q Surrenders 1/3rd of his Share in favour of R, a new Partner
Find out R’s of profit.
Initially, P and Q share profits in the ratio 3:2.
When P surrenders 1/4th of his share, he retains 3/4th of his original share. So, P's new ratio is 3/4 * 3:2.
Similarly, when Q surrenders 1/3rd of his share, he retains 2/3rd of his original share. So, Q's new ratio is 3:2/3 * 2.
Now, R's share is the sum of these new ratios:
R's share = P's new ratio + Q's new ratio
Calculate R's share using the above information.
9) what is partnership Deed?
) A Partnership Deed is a written agreement defining the terms of the partnership, including rights, duties, and profit-sharing among partners.
10) What is preference share?
Preference Share is a type of share that gives its holders priority over common shareholders in terms of dividends and assets.
11) what do you mean by Joint Stock Company?
A Joint Stock Company is a form of business organization where ownership is divided into shares, and the liability of shareholders is limited to the face value of their shares.
12)what is the Balance of fixed capital account ?
The Balance of Fixed Capital Account represents the capital invested by partners in a partnership and is maintained in the books of accounts.
13)what do you mean by cash and cash Equivalents
Cash and cash equivalents refer to highly liquid assets that are easily convertible to known amounts of cash and have a short-term maturity, typically within three months or less.
14)Write one Example of” Investing activities “of Cash Flow Statement?
An example of an "Investing activity" in the Cash Flow Statement is the purchase or sale of long-term assets, such as buying or selling property, equipment, or investments
15)what do Stafe you mean by Financial Statement analysis
Financial statement analysis involves evaluating a company's financial statements, such as the income statement, balance sheet, and cash flow statement, to assess its financial performance, stability, and profitability.
16) one advantages of Common size Statement
One advantage of a Common Size Statement is that it allows for easy comparison of financial statements of different companies, as it expresses each line item as a percentage of a common base, typically total revenue or total assets.
17) what is working capital?
Working capital is the difference between a company's current assets and current liabilities. It represents the funds available for the day-to-day operations and is a measure of a company's short-term liquidity.
18)State one limititon of cash flow Statement?
One limitation of the Cash Flow Statement is that it does not provide information about the profitability of a company. It focuses on cash movements, but it doesn't consider non-cash items, which are crucial for a comprehensive understanding
of financial performance.
