Dear Students,
As you prepare to appear for your CBSE Accountancy Class XII Board Examination, I want to remind you of a few important points that will help you perform your best.
When a company issues shares at a premium (for example, a share of face value ₹10 issued at ₹12, i.e., ₹2 premium), the extra amount collected is credited to the Securities Premium Reserve Account.
Share Capital is the amount of money a company raises by issuing shares to the public (shareholders). It represents the ownership money invested in the company by shareholders.
A share is a unit of ownership in a company. If you buy shares, you become a shareholder and get rights like receiving dividends and voting in company matters.
Imagine a large company as a giant pie. A “share” is a single slice of that pie. When you purchase a share, you are buying a defined fraction of ownership in that company. This ownership status, known as being a shareholder, comes with specific privileges. These can include a potential claim on a portion of the company’s profits and a voice in major company decisions.
Back in the late 20th century, many countries decided to fundamentally reshape their economies. This shift was built on three core ideas: letting go of control, changing who owns things, and opening up to the world. While they often work together, it’s helpful to understand what each one means on its own.
Think of privatisation as moving a business out of government control. It means selling off all or part of a state-owned company – its ownership, management, and control – to private individuals or firms. Why do governments do this? Often, the goal is to boost efficiency and profits. Without constant political meddling, these businesses might innovate more and offer better service. Of course, there are downsides; sometimes jobs get cut or prices go up for consumers. A clear recent example is India’s national carrier, Air India, which transitioned back to the Tata Group in 2021. This move can happen entirely or just partially, using methods like direct sales or reducing the government’s stake (disinvestment).
Dear Students, As you prepare to appear for your CBSE Accountancy Class XII Board Examination, I want to remind you of a few important points that will help you perform your best.
Every year, lakhs of CBSE students leave the exam hall saying the same thing: 👉 “The paper was easy… I just couldn’t finish on time.” What most students don’t realise is this: Your board exam...
My Kid is Writing the Exam, But I’m the One Holding My Breath.
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