Accountancy

SOLUTION Authorised, Registered or Nominal Capital refers to that amount which is stated in the Memorandum of Association. This is the maximum Capital for which a Company is authorised to…

SOLUTION When the holders of preference shares have not been conferred the right of getting their preference shares converted into equity shares, such shares are called non-convertible preference shares.

SOLUTION Holders of these shares have a right to get their preference shares converted into equity shares at their option according to the terms of issue.

SOLUTION Non-redeemable or Irredeemable preference shares are those, the capital of which cannot be refunded before winding up.

SOLUTION Such shares are those, the capital of which will be repaid by the Company within a stipulated period in accordance with the terms of issue.

SOLUTION Such shares get only a fixed rate of dividend every year and do not carry a right to participate in the surplus profits or in any surplus on winding…

SOLUTION Such shares, in addition to the fixed preference dividend, carry a right to participate in the surplus profits, if any, after dividend at a stipulated rate has been paid…

SOLUTION The holders of such shares get a fixed amount of dividend out of the profits of each year. If no dividend is declared in any year due to any…

SOLUTION Cumulative preference shares are those preference shares, the holders of which are entitled to recover the arrears of preference dividend, before any dividend is paid on equity shares. This…