12th Commerce - Book Back Answers - Chapter 26 - English Medium Guides

  

 

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Tamil Nadu Board 12th Standard Commerce - Chapter 26: Book Back Answers and Solutions

    This post covers the book back answers and solutions for Chapter 26 – Commerce from the Tamil Nadu State Board 12th Standard textbook. These detailed answers have been carefully prepared by our expert teachers at KalviTips.com.

    We have explained each answer in a simple, easy-to-understand format, highlighting important points step by step under the relevant subtopics. Students are advised to read and memorize these subtopics thoroughly. Once you understand the main concepts, you’ll be able to connect other related points with real-life examples and confidently present them in your tests and exams.

    By going through this material, you’ll gain a strong understanding of Commerce Chapter 26 along with the corresponding book back questions and answers (PDF format).

Question Types Covered:

• 1 Mark Questions: Choose the correct answer, Fill in the blanks, Identify the correct statement, Match the following 
• 2 Mark Questions: Answer briefly 
• 3, 4, and 5 Mark Questions: Answer in detail

All answers are presented in a clear and student-friendly manner, focusing on key points to help you score full marks.

All the best, Class 12 students! Prepare well and aim for top scores. Thank you!

Chapter 26: Companies Act 2013

I. Choose the correct answer.

1. The Company will have to issue the notice of situation of Registered Office to the Registrar of  companies within _____ days from the date of incorporation.
a) 14 days
b) 21 days
c) 30 Days         
d) 60 Days
Answer Key:
c) 30 Days

2. How does a person who envisages the idea to form a company called?
a) Director         
b) Company Secretary    
c) Registrar       
d) Promoter
Answer Key:
d) Promoter

3. Which of the following types of shares are issued by a company to raise capital from the existing shareholders?
a) Equity Shares
b) Rights Shares    
c) Preference Shares    
d) Bonus Shares
Answer Key:
b) Rights Shares

4. The shares which are offered to the existing shareholder at free of cost is known as __.
a) Bonus Share    
b) Equity Share     
c) Right Share     
d) Preference Share
Answer Key:
a) Bonus Share    

5. The shares which are offered first to the existing shareholder at reduced price is known as ________.
a) Bonus Share
b) Equity Share     
c) Right Share         
d) Preference Share
Answer Key:
c) Right Share    

II. Very short answer questions.

1. What are the four stages of formation of a company?
Answer Key:

• Promotion    
• Registration            
• Capital Subscription
• Commencement of Business.

2. What is Bonus Shares?
Answer Key:

• A company may, if its Articles provide, capitalize its profits by issuing fully-paid bonus shares.
• The issue of bonus shares by a company is a common feature.

3. What is Right Shares?
Answer Key:

• Right shares are the shares which are issued by the company, with the aim of increasing the subscribed share
• capital of the company by further issue, if it is authorized by its Articles.
• The right shares are primarily issued to the existing equity shareholders through a letter of an issue, on pro rata basis.

4. What is Debentures?
Answer Key:

• When a company needs funds for extension and development purpose without increasing its share capital,
• It can borrow from the general public by issuing certificates for a fixed period of time and at a fixed rate of interest. 
• Such a loan certificate is called a debenture.

III. Short answer questions.

1. What do you understand by Issue of Securities at Premium?
Answer Key:

• When shares are issued at a price above the face or nominal value, they are said to be issued at a premium.
• The amount of share premium has to be transferred to an account called the ‘Securities Premium Account’.
• For example, a share having the face value of Rs.10 is issued at Rs.12. Here, Rs.2 is the premium.

2. Explain different kinds of Preference shares. (any 3)
Answer Key:
Cumulative Preference shares:

• As the word indicates, all dividends are carried forward until specified, and paid out only at the end of the specified period.

Redeemable Preference shares:

• Such preference shares can be claimed after a fixed period or after giving due notice.

Non-convertible Preference shares:

• Non-convertible preference shares cannot be, at any time, converted into equity shares.

IV. Long answer questions.

1. Write the differences between Shares and Debentures. (any 5)
Answer Key:

S.no	Shares	Debentures
1	Shares are part of the capital of a company.	Debentures constitute a loan
2	Top Level	Middle Level and Lower Level
3	Shareholders gets dividend with a varying rate.	Debenture holder gets fixed rate of interest which carries a priorities over dividend.
4	Shares do not carry any such charge.	Debentures generally have a charge on the assets of the company.
5	Shares cannot be issued at a discount.	Debentures can be issued at a discount without restrictions.
6	Shareholders enjoy voting right.	Debenture holders do not have any voting right.
7	Return of allotment in e-Form No.2 is to be filed for allotment of shares.	Return of allotment is not required for allotment of debentures.

               
2. What are the various kinds of Debentures? (any 5)
Answer Key:

• Debenture is a document issued by the company for acknowledging the loan from the public.
• Debentures are classified into different categories on the basis of:
• Convertibility of the Instrument
• Security of the Instrument
• Redemption ability; and
• Registration of Instrument.

On the basis of convertibility:
Non-Convertible Debentures: 

• These instruments cannot be converted into equity shares.

Partly Convertible Debentures: 

• Apart of these instruments are converted into equity shares.

Fully Convertible Debentures: 

• These are fully convertible into equity shares.

Optionally Convertible Debentures: 

• The investor can have the option to either convert the debentures at a price decided by the issuer or agreed upon at the time of issue.

On the basis of Security:
Secured Debentures:  

• These instruments are secured by a charge on the fixed assets of the issuer company.

Unsecured Debentures:  

• These instruments are unsecured against the assets.

On the basis of Redeemability:
Redeemable Debentures: 

• It refers to the debentures which will be redeemed in future.

Irredeemable Debentures: 

• It is a debenture, in which no specific time is specified by the companies to pay back the money.

On the basis of Registration:
Registered Debentures: 

• These are issued in the name of a particular person, who is registered by the company.

Bearer Debentures:  

• These are issued to the bearer and are negotiable instruments, and are transferred by mere delivery.

 

Prepared By:

 

B. MUTHUKUMAR 
PG ASST COMMERCE
MKVK MATRIC HR SEC SCHOOL 
TENKASI