CBSE Class 12 Accountancy Hots - Accounting for Share Capital & Debentures

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CBSE Class XII Accounting for Share Capital & Debentures HOTs Questions Database. Based on CBSE and CCE guidelines. The students should practice these HOTs Questions to gain perfection which will help him to get more marks in CBSE examination. Based on CBSE and CCE guidelines. Based on the same pattern as released by CBSE every year. CBSE releases HOTs Questions every year. These papers are released prior to the CBSE board examinations so that students can do practice. database of 1 marks, 2 marks, 3 marks and 5 marks questions. Please refer to more CBSE sample papers, question papers, HOTs etc in other links

Accounting for Share capital & Debentures 

Q.1   What do you mean by Private placement of shares?

Ans.  Private Placement of shares implies issue and allotment of shares to a selected groups of persons privately and

         not to public in general through public issue. In order to place the shares privately, a company must pass a

         special resolution to this effect.


Q.2   What is Sweat Equity?

Ans. Sweat Equity shares means easily shares issued by the company to its employees or whole time directors at a

        discount or for consideration other then cash for providing know - how or making available right in the nature

        of  intellectual properly rights or valve addition by whatever name called.

Q.3   What maximum amount of discount can be allowed on the reissue of forfeited shares?

Ans. The maximum amount of discount on reissue of forfeited shares is that the amount of discount allowed cannot

        exceed the amount that had been received on forfeited shares on their original issue and that the discount

        allowed on re issue of forfeited shares should be debited to the share forfeited account.


Q.4   State in brief, the SEBI Guidelines regarding Debenture Redemption Reserve.

Ans.  At per SEBI Guidelines, an amount equal to 50% of the debenture issue must be transferred to DRR before the

         redemption begins. In other words, before redemption, at least an amount equal to 50% of the debenture issue

         must stand to the credit of DRR

Q.5   Name the head under which discount on issue of debentures appears in the Balance Sheet of "C" Company.

Ans. Discount on issue of debentures will appear under the heading Miscellaneous Expenditure. 


Please refer to attached file for Accounting for Share capital & Debentures HOTs


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