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प्रश्न
Ms. Rubina, a first-time investor, does not understand the difference between securities with voting rights and securities without voting rights.
Give any five differences between the two types of securities to help her understand the difference.
उत्तर
The securities with voting rights are equity shares and the securities without voting rights are preference shares.
These are some of the differences between the two for Ms. Rubina's understanding:
| S. No. | Equity shares | Preference shares |
| 1. | The level of risk is significant due to the investor's reliance on the company's success or failure. | The fixed dividend rate ensures consistent and stable income, reducing risk significantly. |
| 2. | Dividend rates typically vary based on the company's profit. | Rate of dividend is fixed. |
| 3. | Full voting rights. | Voting rights are limited when dividends are unpaid for a specific period or when concerns affecting them are engaged. |
| 4. | Not redeemable during the life time of the company. | Redeemable during life time of the company. |
| 5. | Not convertible into preference share. | May be convertible into equity share. |
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संबंधित प्रश्न
Jain Ltd. purchased Building for Rs 10,00,000 from Gupta Ltd. 10% of the payable amount was paid by a cheque drawn in favour of Gupta Ltd. The balance was paid by issue of Equity Shares of Rs 10 each at a discount of 10%.
Pass necessary Journal Entries in the books of Jain Ltd.
A person who purchases shares of a company is known as _______ of the company.
State, with reasons, whether the following statement is True or False :
Right shares are issued to the general public.
What is equity share? Explain the feature of equity shares.
Equity shares are paid dividend at ____________ rate.
Fully convertible debentures are converted into __________ shares on maturity.
Discuss the process for the allotment of shares of a company in case of over subscription.
Jain Ltd purchased machinery costing ₹ 10,00,000 from Ayer Ltd. 50% of the payment was made by cheque and for the remaining 50% , the company issued Equity Shares of ₹ 100 each at a premium of 25% . Pass necessary Journal entries in the books of Jain Ltd . for the above transaction.
Write any four features of equity shares.
From the following Balance Sheets of Vinayak Ltd. as of 31st March 2021, Prepare a Common-size Balance Sheet.
| Vinayak Ltd. Balance Sheet as of 31st March, 2021 | |||
| Particulars | Note no. | 31.3.2021 (₹) | 31.3.2020 (₹) |
| I EQUITY AND LIABILITIES | |||
| 1. Shareholder’s Funds: | |||
| a. Share Capital | 30,50,000 | 20,00,000 | |
| b. Reserve and Surplus | 2,80,000 | 6,00,000 | |
| 2. Current Liabilities: | |||
| a. Trade Payable | 6,70,000 | 4,00,000 | |
| Total | 40,00,000 | 30,00,000 | |
| II ASSETS | |||
| 1. Non-Current Assets: | |||
| a. Fixed Assets: | |||
| i. Tangible Assets | 16,00,000 | 12,00,000 | |
| ii. Intangible Assets | 2,00,000 | 3,00,000 | |
| 2. Current Assets | |||
| a. Inventories | 8,00,000 | 3,00,000 | |
| b. Trade Receivables | 12,00,000 | 10,00,000 | |
| c. Cash and Cash Equivalents | 2,00,000 | 2,00,000 | |
| Total | 40,00,000 | 30,00,000 | |
