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Preference Shares

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  Preference Shares:-   Preference Shares are those which carry preference over other classes of shares in the payment of dividend and repayment of capital at the time of winding up. Types of preference Shares:-   Preference Shares can be broadly divided into. 1) Redeemable preference Shares. 2)irredeemable preference Shares 3) Cumulative preference Shares 4) Non - Cumulative preference Shares 5) Convertible preference Shares 6) Non - Convertible preference Shares 7) participating preference Shares. 8) Non - participating preference Shares   Redeemable preference Shares:-   These are the shares, the capital of which is refundable after a stipulated period. Irredeemablepreference Shares:- These are the shares, capital of which is not refunded during the life time of the company. Cumulative preference Shares:- These are the shares on which a fixed rat of dividend is paid out of the current or future profits. If in any year, the company doesn't pay the dividend wil...
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Accountancy and book-keeping

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    Accountancy:-          Accountancy refers to a systematic knowledge of Accounting. It explains' why to do' and'how to do' of various aspects of accounting. It tells us why and how to prepare the books 📚 of accounts and how to summarize the accounting information and communicate it to the intrested parties. Accounting:-     It deals with the following points: 1. Identifying the transactions and events. 2. Measuring the identified Transactions and events in a common Measuring unit. 3. Recording the identified and measured transactions and events. 4. Classifying the recorded Transactions and events in ledger. 5. Summarizing the classified transactions and events in the form of income statement and position statement  6. Analyzing the summarized results. 7. Interpreting the analyzed results. 8. Communicating the interpreted information to the interested parties.       Book-keeping:-           Book...
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Distinction between profit and loss Account and balance sheet

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  Profit and loss Account:- 1) The main objective of preparing profit and loss Accounts to ascertain the Net profit or Net loss of the business during the year. 2) profit and loss Account contains only Nominal Accounts. 3) All Revenue receipts and Revenue expenditure are recorded in profit and loss Account. 4) it is an Account having ' Debit ' and ' Credit ' . 5) The balance figure of this account is either Net profit or Net loss. 6) Generally it is prepared for year ending. Balance Sheet:- 1) The main objective of preparing Balance Sheet is to ascertain the correct financial position of the business on a specific date. 2) Balance Sheet contains all  Real and personal accounts. 3) capital Receipts and capital expenditure are shown in the Balance Sheet. 4) It is a statement and hence ' T ' and ' By ' are not used. 5) Balance Sheet will not show any balancing figure. Assets are equal to liabilities. 8) Generally it is prepared for half - year ending or yea...
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