Doubts

SOLUTION Equity shares are those which are paid dividends only when profits are left after payment of fixed rate of dividend to preference shares. In other words, there will be…

SOLUTION Preference Shares are those which carry the following two rights: (i) They have a right to receive dividend at a fixed rate before any dividend is paid on the…

SOLUTION (i) Preference Shares, and (ii) Equity Shares.

SOLUTION Total capital of the Company is divided in units of small denominations such as Rs. 10 or Rs. 100. Each such unit is called share.

SOLUTION (i) there is no restriction on the transfer of its shares; (ii) Minimum number of its members is 7 and there is no restriction on maximum number.

SOLUTION (i) It restricts the right to transfer its shares; (ii) It limits the number of its members to 200 (exclusive of past and present employees).

SOLUTION (i) It is an artificial person created by law; (ii) It has a separate legal entity.

SOLUTION Any one: Provision for Doubtful Debts; Accumulated Depreciation; Investment Fluctuation Fund.

SOLUTION (i) for the debts of the firm to the third parties. (ii) to each partner proportionately what is due to him/her from the firm for advances as distinguished from…