What is collateral security?

Manshi Rajput answered  •  8 hours ago
The term collateral refers to an asset that a lender accepts as security for a loan. ... The collateral acts as a form of protection for the lender. That is, if the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recoup some or all of its losses

What is the treatment of capital reserve (and not general reserve) in cash flow statement ?

Manshi Rajput answered  •  8 hours ago
The funds constituting the capital reserve account are not used to pay dividends, repurchase shares or engage in other capital return programs. So, No Treatment needs to be carried out in Cash Flow Statement for Capital Reserve. ... The gain on sale of fixed asset is transferred to capital reserve .

State four reasons when cash book balance will be lower than balance as per bank statement or bank pass book.?

Manshi Rajput answered  •  8 hours ago
1: Interest allowed by the bank:-
Interest allowed by the bank is credited to the firm, but unless intimation is received by the firm from the bank to this effect, no entry is recorded in the bank column of the cash book. The difference in these balances may arise because of the following reasons.

2. Interest and dividend collected by the bank:-
If the bank collects dividend o
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Manshi Rajput answered  •  8 hours ago
Factor affecting capital structure
(1) Cash Flow Position: While making a choice of the capital structure the future cash flow position should be kept in mind. Debt capital should be used only if the cash flow position is really good because a lot of cash is needed in order to make payment of interest and refund of capital.

(2) Interest Coverage Ratio-ICR: With the help of this ra
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L, M and N are partners sharing profit and losses in the ratio of 25:15:9 . M retires. It is decided that the profit sharing ratio between remaining partner will be the same as existing between M and N. Calculate Gaining ratio
  • a)
  • b)
  • c)
  • d)
Correct answer is option 'B'. Can you explain this answer?

Nandini Jangid answered  •  13 hours ago
OPSR = 25:15:9
Share of L = 25/49
Share of M = 15/49
Share of N = 9/49
NPSR = 15:9 = 5:3
Share of L = 5/8
Share of N = 3/8
Gaining Ratio = NPSR - OPSR
Gaining part of L = 5/8 - 25/49 = 45/392
Gaining part of N = 3/8 - 9/49 = 75/392
Gaining Ratio = 45/392 : 75/392 = 45:75
So option B is correct.

What is the definition of macroeconomics?

Mansi V S answered  •  14 hours ago
Sinply, Economics is a discipline where the society and its resources are studied. There are 2 branches of economics. Micro economics and macroeconomics. Macro economics is the study of nation as a whole. Eg. national income, general tax level, poverty, etc....All those matters that affect the economy as a whole is covered in macroeconomic

Who is interested in the analysis of financial statement?
  • a)
  • b)
  • c)
  • d)
    All of these
Correct answer is option 'D'. Can you explain this answer?

Mansi V S answered  •  14 hours ago
All the above 3 parties are interested in the analysis of financial statements. For creditors analysis will show the credit worthiness of the parties to whom the gives credit. creditors before lending money or giving credit makes this analysis so that they can ensure their payment. Government is interested as a matter of tax and economic development of the society. Investors invest their money in ... more

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Krishna Ltd. is manufacturing steel at its plant at Noida. Due to economic growth, the demand for steel is also growing. The company is planning to set up a new steel plant at Gurgaon. It needs Rs. 800 crore to start the new plant. It decides to raise Rs. 300 crore through debentures, Rs. 200 crore through long-term loan from banks and Rs. 200 crore by issue of equity share to the public. It decided to finance the remaining amount by utilizing itsreserves and surplus.1. State the importance of financial planning for this company.2. What is the capital structure of this company? Explain.3. Identify the financial decision involved when the company decides to raise Rs. 800 crore from different sources of funds.4. How will the payment of dividend in Krishna Ltd. be affected? Explain.

Ravi Yadav answered  •  18 hours ago
Financial planning helps in reducing the cost of financing
and it helps in easy and early availability of funds
and it helps in optimum utilisation of financial resources
and it helps in maintaining the favourable financial leverage of the companies capital structure

and the capital structure refers to the in overall capital the quantity of debt and equity and I that ca
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Can company issue debenture at premium and redeemed at par?

Ravi Yadav answered  •  19 hours ago
Yes a company can issue it debentures at premium and redeemed at par and but not the less than the face value of debentures

Does loss on redemption of preference shares not debited to profit and loss ac?

Ravi Yadav answered  •  19 hours ago
Because loss on redemption of preference share is not any revenue loss but it is a capital loss so it can reduces the capital and that cause the it cannot be debited to profit and loss account


Priyanshu Tiwari answered  •  20 hours ago
Drawbacks of land reforms
Rural poverty still exists. Land ceiling varies from state to state. Many plantations were exempt from land ceiling act. Many people own huge tracts of land under 'benami' names.

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