following two types of shares‚ (i) Preference Shares‚ (ii) Equity Shares. Issue of Debentures Issue of debentures is another is important source of obtaining fixed or long-term capital by a joint stock company. A debenture is an acknowledgement of a debt by a company usually issued under a common seal. Debentures are the uniform parts of a loan raised by the company. According to Thomas Evelyn‚ "A debenture is a document under the company’s seal which provides for the payment of a principal sum
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BONUS ISSUE An offer of free additional shares to existing shareholders. A company may decide to distribute further shares as an alternative to increasing the dividend payout. Also known as a "scrip issue" or "capitalization issue". Issue of Bonus Share A bonus share is a free share of stock given to current shareholders in a company‚ based upon the number of shares that the shareholder already owns. While the issue of bonus shares increases the total number of shares issued and owned‚ it does
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QUESTION 1 a. Define a promoter of a company. Explain and illustrate with decided cases his legal position in relation to a company. Though the certificate of incorporation is conclusive for purposes of incorporation‚ using decided cases‚ outline circumstances under which it could be withdrawn.(10marks) ANSWER Definition; A promoter is one who undertakes to form a company with reference to a given project and to set it going and who takes the necessary step to accomplish that purpose - A promoter
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level‚ etc) and external sources that can be furthermore divided into three different form‚ either short term (for ex: bank overdraft‚ creditors‚ debt factoring etc)‚ medium term (leasing‚ hire purchase‚ medium term loan‚ etc) or long term (shares‚ debentures‚ long term loan‚ etc). So the business can raise finance in number of ways. It also depends on the nature of business‚ if it is a big organisation than they have large variety of financial source. They have large number of shareholders‚ from where
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that can be done to attained conservative loans. The MNE main focus is on external sources; which it explore growth capital‚ equity offerings‚ bank loans‚ lines of credit and mortgages (Brigham & Ehrnhardt‚ 2011). The internal source focuses on debentures‚ lines of credit‚ and long/ short term loans. Long Term Loans Long term loans are a loan that required repayment in a series over one or more years and can be repaid annual‚ semi-annual or monthly payment. The purpose of long-term loans is when
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1. What are the three golden rules of accounting? Real Accounting: Dr - What comes in Cr - What goes out Examples of this kind of transaction include cash/bank and rent. Personal Accounting: Debit is the receiver. Credit is the giver. An example of this kind of transaction is Vendor/Customer relations. Nominal Accounting: All gains and income are credit. All losses and expenses are debit. An example of this kind of transaction is sales and/or purchases. 2.Balance Sheet DEFINITION OF
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UVA-F-1339 Version 2.6 CORNING‚ INC.: ZERO COUPON CONVERTIBLE DEBENTURES DUE NOVEMBER 8‚ 2015 (A) On November 8‚ 2000‚ Corning announced that it would issue $2.7 billion in zero-coupon convertible debentures priced at $741.923 per $1‚000 principal amount. The initial public offering (IPO) price yielded 2% per annum to maturity‚ compounded semiannually. A summary of terms is given in Exhibit 1. Concurrent with the offering‚ Corning also conducted a separate public offering of 30 million shares of
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000 Ans 5. The amount of Capital Called up that has not been paid by the shareholders is called ‘Calls in Arrears’. Ans 6. The amount of interest is payable on Calls in Advance will be @ 6% per annum. Ans 7. Issue of debenture as collateral security means that debentures issued as security of loan in addition to prime security. Ans 8. (a) Table showing Adjustment Particulars Profit to be distributed (1:1:1) (Rs. 45‚000 + Rs. 30‚000 + Rs. 60‚000) Profit already distributed (1:1:2)
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80 Marks Periods Marks 10 25 18 7 60 Accounting for Partnership Firms and Companies Accounting for Partnership Firms - Fundamentals Accounting for Partnership Firms - Reconstitution and Dissolution Accounting for Share Capital Accounting for Debentures 20 52 38 14 124 Part B: Financial Statement Analysis 5. Analysis of Financial Statements 6. Cash Flow Statement 7. Project Work Unit 1 : Project File Unit 2 : Written Test Unit 3 : Viva Voce’ 24 20 42 4 marks 12 marks (one hour) 4 marks
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SHREYA JAJOO 1421646 SOURCES FOR LONG TERM FINANCE Long-Term Finance Long-term finance is borrowed capital that will be repaid over a specific time period longer than one year. Need for Long-Term Finance Long-term finance is required for modernization‚ expansion and diversification within the company or its products. It is when the company requires huge quantities of goods or services. Long-term finance decision is an irreversible decision. Sources of Long-term Finance: 1. Equity Capital
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