Answer Posted / triloksharma71
SHARES- 1.share holder is the real owner of the
company.share holder have not fixed dividend rate.share
holder have not maturity period.share are not
redeemed.shares are more volatile.share holder have high
risk.share holder have high return.share holder have right
on residial income.share face value is Rs 10/each.
DEBENTURE-1.debenture holder is the creditor of a
company.they have fixed rate of interest.they have a
maturity period.they dont have right to vote.debentures are
redeemed.they are not volatile.they have no risk.they have
low return.debenture face value is Rs-100/each
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please answer this question.the following balances were extracted from the books of modern traders on 31st dec,2010.capital(85000)fixed assets(45000)stock1-1-2010(15000)sundry debtors(20600)productive exp(3300)reserves fund(6600)discount received(800)cash in hand(6200)drawing(5000)accomulated dep.(9000)purchases(82000)bad debts(400)unproductive exp.(27400)sundry creditors(9000)sales(120000)cash at bank(25500).adjustments.stock on 31-12-2010(15000).outstanding wages (5000) write-off (600)of further bad debts. create provision for bad & doubtful debts at {5%) on debtors.unproductive expenses includes anitem of prepaid insurance (100).provide depreciation on original cost of fixed assets @ (10%).
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