Class 12 Accounting Question Paper 2079|NEB|
NEB -GRADE 12
Accounting 2022
for regular students| SUBJECT CODE 1041 'O'
Full time 3 hrs.
Full Marks -75
Pass marks -27
- economics chapterwise important questions
- compulsory subjects all questions 2078, 2079
- business mathematics
CONTENT OVERVIEW
1. Overview of company formation
Company formation is the legal process of creating a new business entity that can conduct business operations, enter into contracts, and own assets under its own name. In this process, the business is recognized as a separate legal entity from its owners or shareholders.
Types of Companies: There are different types of companies, i.e., private companies, public companies, single-person companies, and more. Each company has its own set of rules and regulations that govern its formation and operation.
Memorandum of Association: It is a legal document that outlines the company's objectives, its name, registered office, authorized capital, and the type of company it is.
Share: The share is the amount of money that the company raises by issuing shares to the shareholders. It can be of different types, such as authorized capital, issued capital, and subscribed capital.
Overall, company formation involves various legal and financial aspects, and it is important to understand the process thoroughly before starting a new business.
2. Issues of Shares for Cash
Shares for cash is a term used when a company issues shares to raise funds from investors by selling them in exchange for cash. It can help a company raise capital without incurring debt and can also dilute the ownership of existing shareholders in the company.
Dilution of Ownership: When a company issues shares for cash, it increases the number of shares outstanding, which can dilute the ownership of existing shareholders in the company. This can affect the control and decision-making power of existing shareholders.
Share Price Fluctuations: Issuing shares for cash can also affect the market price of a company's shares. If the market graph decreases the share issuance as a negative signal, it can lead to a decline in the share price.
Regulatory Compliance: Companies issuing shares for cash need to comply with various regulatory requirements, such as obtaining necessary approvals, filing necessary documents, and complying with the Companies Act, 2013.
Valuation is an important factor to consider when issuing shares for cash. The company should ensure that the issue price of the shares is reasonable and not overpriced or underpriced, which can affect investor confidence.
Use of Funds: Companies should have a clear plan for the use of funds raised through the issuance of shares for cash.
Overall, the issue of shares for cash can be an effective way for a company to raise capital, but it also involves certain risks and complexities.
3. Forfeiture and reissue of shares
Forfeiture of shares and reissue of forfeited shares are two important processes related to shareholding in a company.
Forfeiture shares: it occurs when a shareholder fails to pay the full amount due on their shares as per the terms of the agreement.
Reissuing forfeited shares can have advantages for the company.
Recovery of unpaid amount: The company can recover the unpaid amount from the forfeited shares by selling them to new shareholders.
However, reissuing forfeited shares can also have certain risks and complexities, such as dilution of ownership and potential legal issues if the forfeiture process is not followed correctly.
Overall, the forfeiture and reissue of shares are important processes that companies should carefully evaluate before proceeding. It is recommended to seek professional advice and comply with all necessary regulatory requirements when undertaking these processes.
4. Issues of sharing cash other than cash
Issuing shares for consideration other than cash refers to a process where a company issues shares to acquire assets or services other than cash, such as property, patents, or services rendered by professionals. This process can provide an alternative means of financing for a company and help conserve its cash reserves.
Legal Compliance: Companies issuing shares for consideration other than cash need to comply with various legal and regulatory requirements, such as obtaining necessary approvals, filing necessary documents, and complying with the Companies Act, 2013.
Dilution of Ownership: Issuing shares for consideration other than cash can increase the number of shares outstanding, which can dilute the ownership of existing shareholders in the company. This can affect the control and decision-making power of existing shareholders.
Share Price Fluctuations: The issuance of shares for consideration other than cash can also affect the market price of a company's shares. If the market shows the charts as a negative signal, it can lead to a decline in the share price.
Use of Funds: Companies should have a clear plan for the use of funds raised through the issuance of shares for consideration other than cash. It can help investors assess the potential return on their investment and make informed decisions about their amount.
Overall, issuing shares for consideration other than cash can be an effective way for a company to acquire assets or services, but it also involves certain risks and complexities.
5.financial statements
Some of the important financial statements that are covered in Class 12 Accounting include,
The income statement, also known as a profit and loss statement, reports a company's revenues, expenses, and net income over a specific period of time.
Balance Sheet: A balance sheet is a chart of a company's assets, liabilities, and equity at a specific point in time.
Cash Flow Statement: It also reports the inflows and outflows of cash and cash equivalents for a specific period of time.
Statement of Changes in Equity: This statement of changes in equity reports the changes in a company's equity accounts over a specific period of time.
The process of unit or output costing typically involves the following steps:
Calculate the total cost of production by the total number of units produced: This calculation provides the cost per unit of product.
Unit or output costing can be useful for companies in determining the profitability of a product as well as in setting prices for the product.