CA Foundation Exam > CA Foundation Questions > As per Schedule VI of the Companies Act, 1956...
Start Learning for Free
As per Schedule VI of the Companies Act, 1956, under which of the following heads is ‘Premium on issue of Preference Shares’ shown in the balance sheet of a company?
- a)Miscellaneous expenditure
- b)Debentures
- c)Reserves and surplus
- d)Current liabilities and provisions
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
As per Schedule VI of the Companies Act, 1956, under which of the foll...
In the balance sheet of a company, the 'Premium on issue of Preference Shares' is shown under the head of 'Reserves and surplus'. Here's a detailed explanation of why it is classified under this head:
1. Reserves and surplus: This head in the balance sheet represents the accumulated profits of the company that are not distributed as dividends. It includes various reserves such as general reserves, capital reserves, and specific reserves.
2. Premium on issue of Preference Shares: When a company issues preference shares at a price higher than their face value, the excess amount is called the 'premium'. It is a form of additional consideration received by the company from investors for issuing preference shares.
3. Treatment in the balance sheet: The premium on issue of preference shares is treated as a part of the company's accumulated profits. It is added to the reserves and surplus of the company, reflecting the additional value generated by the issuance of preference shares.
4. Disclosure: The premium on issue of preference shares is disclosed separately in the balance sheet under the head of 'Reserves and surplus'. It is usually shown as a line item within this category, providing transparency to stakeholders about the additional funds received by the company through the issuance of preference shares.
Therefore, as per Schedule VI of the Companies Act, 1956, the 'Premium on issue of Preference Shares' is shown in the balance sheet of a company under the head of 'Reserves and surplus'.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Top Courses for CA FoundationView all
As per Schedule VI of the Companies Act, 1956, under which of the following heads is ‘Premium on issue of Preference Shares’ shown in the balance sheet of a company?a)Miscellaneous expenditureb)Debenturesc)Reserves and surplusd)Current liabilities and provisionsCorrect answer is option 'C'. Can you explain this answer?
Question Description
As per Schedule VI of the Companies Act, 1956, under which of the following heads is ‘Premium on issue of Preference Shares’ shown in the balance sheet of a company?a)Miscellaneous expenditureb)Debenturesc)Reserves and surplusd)Current liabilities and provisionsCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about As per Schedule VI of the Companies Act, 1956, under which of the following heads is ‘Premium on issue of Preference Shares’ shown in the balance sheet of a company?a)Miscellaneous expenditureb)Debenturesc)Reserves and surplusd)Current liabilities and provisionsCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for As per Schedule VI of the Companies Act, 1956, under which of the following heads is ‘Premium on issue of Preference Shares’ shown in the balance sheet of a company?a)Miscellaneous expenditureb)Debenturesc)Reserves and surplusd)Current liabilities and provisionsCorrect answer is option 'C'. Can you explain this answer?.
As per Schedule VI of the Companies Act, 1956, under which of the following heads is ‘Premium on issue of Preference Shares’ shown in the balance sheet of a company?a)Miscellaneous expenditureb)Debenturesc)Reserves and surplusd)Current liabilities and provisionsCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about As per Schedule VI of the Companies Act, 1956, under which of the following heads is ‘Premium on issue of Preference Shares’ shown in the balance sheet of a company?a)Miscellaneous expenditureb)Debenturesc)Reserves and surplusd)Current liabilities and provisionsCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for As per Schedule VI of the Companies Act, 1956, under which of the following heads is ‘Premium on issue of Preference Shares’ shown in the balance sheet of a company?a)Miscellaneous expenditureb)Debenturesc)Reserves and surplusd)Current liabilities and provisionsCorrect answer is option 'C'. Can you explain this answer?.
Solutions for As per Schedule VI of the Companies Act, 1956, under which of the following heads is ‘Premium on issue of Preference Shares’ shown in the balance sheet of a company?a)Miscellaneous expenditureb)Debenturesc)Reserves and surplusd)Current liabilities and provisionsCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of As per Schedule VI of the Companies Act, 1956, under which of the following heads is ‘Premium on issue of Preference Shares’ shown in the balance sheet of a company?a)Miscellaneous expenditureb)Debenturesc)Reserves and surplusd)Current liabilities and provisionsCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
As per Schedule VI of the Companies Act, 1956, under which of the following heads is ‘Premium on issue of Preference Shares’ shown in the balance sheet of a company?a)Miscellaneous expenditureb)Debenturesc)Reserves and surplusd)Current liabilities and provisionsCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for As per Schedule VI of the Companies Act, 1956, under which of the following heads is ‘Premium on issue of Preference Shares’ shown in the balance sheet of a company?a)Miscellaneous expenditureb)Debenturesc)Reserves and surplusd)Current liabilities and provisionsCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of As per Schedule VI of the Companies Act, 1956, under which of the following heads is ‘Premium on issue of Preference Shares’ shown in the balance sheet of a company?a)Miscellaneous expenditureb)Debenturesc)Reserves and surplusd)Current liabilities and provisionsCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice As per Schedule VI of the Companies Act, 1956, under which of the following heads is ‘Premium on issue of Preference Shares’ shown in the balance sheet of a company?a)Miscellaneous expenditureb)Debenturesc)Reserves and surplusd)Current liabilities and provisionsCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup