Class 12th ancy Notes 676n20

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Class 12th ancy Notes Dear 10+2 (Commerce) Students, We are happy to publish the ancy notes for your class. Class 12th or 10+2 (Commerce) Class's examination is taken by your board. If you are doing the 12th Class from state board, state board is responsible for taking examination. If your school is d with CBSE, then CBSE is responsible for taking examination. Whether it is state board or CBSE, both will take the ancy examination, if you are doing 10+2 in commerce. Syllabus is almost same. They want to check your capability of basic book keeping and ancy. All major courses in the field of ing will start after 12th class or grade examination. So, good merit in it is must.

For your success in 12th Class ancy, we are providing following notes. In the link of title of the topic, we have given simple explanation. Check the link of topic and study the answer. I think, you all my students and it is my duty to guide you in very simple words. Following notes has been written in very simple language and useful to cover the syllabus of 12th Class ancy.

Divisions of Share Capital of Company It is true that no business can operate without fund and fund can be received only by capital or loan . If company or corporate wants to get capital , it should make some division for this purpose. After this shares can be issued first time to public . For company ant , its knowledge is must .

We can explain main divisions of share capital of company with following way :-

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1st - ed or authorised or nominal capital

That part of total capital with whom company wants to , that part is called authorised capital . This the maximum amount that can any company issue to public for getting capital fund . Still there is not quantity limit for authorised capital determination under Indian Company Act 1956 .

2nd Issued Capital

It is that part of authorised capital which is offered to public to acquire , that part is called issued capital .

3rd Subscribed Capital

It is that part of issued capital which is accepted by public. Subscribed capital can not more than issued capital . If it happen than it will be over subscription and it will be rejected or accepted under pro-rata basis for providing proper ing treatment .

4th Called up Capital

It is that part of issued capital which is to be paid by shareholders . Company has demanded money of this part . If shareholder does not pay called up capital , then this part becomes call in arrears .

5th Paid Up capital

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It is that part of called up capital which is paid by shareholders and after this they can become real owner of company.

6th Reserve capital

One company can determine with special resolution that some part of total subscribed capital will not demanded from shareholder and it is not demand up to the winding up of company . That part of capital is called reserve capital . It can not be changed in general capital with the permission of Court . Board of directors also can not change it in normal capital . It is most benefited for company's creditors . because , this amount can be utilized for payment to creditors at the time of liquidation of company. There is no need to do any ing treatment for reserve capital but a small note is written in balance sheet in which company mentions the amount of reserve capital and other interested parties can focus on this note .

For instance

A company has Rs. 20000000 as its authorised capital divide into 1000000 equity shares of Rs. 10 each and 200000 pref. shares of Rs. 50 each. Company issued 800000 equity shares and 100000 preference shares . The public subscribed for 600000 equity shares and 100000 pref. shares . All shareholders paid the amount with the exceptionof 50000 equity shares @ Rs. 5 per share . Calculate the amount of various types of share capital .

Authorised capital

1000000 equity shares of Rs. 10 each → Rs. 10000000 200000 pref. shares of Rs. 50 each → Rs. 10000000 ___________________________________________ ---------------------------------------> Rs. 20000000 4

___________________________________________ Issued Capital 800000 Equity shares of Rs. 10 each → Rs. 8000000 100000 pref. share of Rs. 50 each → Rs. 5000000 __________________________________________ ----------------------------------------> Rs. 13000000 __________________________________________ Subscribed capital 600000 equity shares of Rs . 10 each → Rs. 6000000 100000 pref. share of Rs. 50 each → Rs. 5000000 ___________________________________________ ---------------------------------------> Rs. 11000000 ___________________________________________ Called up capital 600000 equity shares of Rs. 10 each Called up only Rs. 8 per share → Rs 4800000 100000 pref. shares called up @ Rs. 40 each → Rs. 4000000 ____________________________________________ ------------------------------------------------> Rs. 8800000 ____________________________________________ Paid up capital Called up equity capital less calls in arears of Rs. 5 each --------------------------------→ Rs. 4550000 paid up capital of pref. shares ---------------→ Rs. 4000000 _____________________________________________ ----------------------------------------------> Rs. 8550000 _____________________________________________

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Financial Statements of Not-forProfit Organizations Financial statements of not-for-profit organizations mean that financial statements which are made by organizations whose aim is not to earn and distribute the profit. It means, these organizations do not involve in business activities but these organisations use all the surplus from their activities in achieving their Goal. Because, these organisations operate with the money of donation or sponsorship, so they have to keep s and show their financial results in the form of financial statements. I am also operating many not-for-profit organisations whose aim is to do social welfare activities. Recently, I got some donation from my UK and Indian donors. So, I maintain my all Not-for-profit organizations' . I also make financial statements of my Not-for-profit organisations because any donor can check the uses of their money and my financial statements can clear his all doubts. If any Not-for-Profit Organization do not make financial statements, it means, its activists are cheating with donors' donations and use donation money for personal benefits. If you are donor, then before donation, please check the financial statements of Not-for-profit Organisation from expert ant. Only expert ant or auditor can audit the financial statements and can bring many unknown loopholes. Here, I am analysis to Big Not-for Profit Organisation's financial Statement Financial Statements 2010 of Wikipedia 1st Balance Sheet of Wikimedia Foundation, Inc.

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Above is simple balance sheet of this organisation in which it shows its total assets and liabilities. But some items are very interesting to know. (A) Contribution Receivable As per per the balance sheet of this NPO, major part of total assets is current assets. One of its current asset is contribution receivable. In 2009, there were 1.3 M $ as contribution receivables and now are 0.5 M $. Actually, some of Wikipedia's contributors are its huge fan and send some money gift for its promotion. Because they are providing these gifts from many years. So, Wikipedia's ants know from whom we got gift and from whom we did not get gift at the end of year. Now, that contribution which is receivable is outstanding income of Wikipedia and Wikipedia has shown it as current asset. If we study its statement of activity deeply, we found that same contribution receivables are included in its contribution.

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By what it has decreased from 2009. Answer is simple, some contributors have paid their contribution dues to Wikipedia. Now, how is Wikimedia calculating two years ago pending contribution. Answer is its Wikipedia is the sea of knowledge and every second something is updating whose knowledge is to its management. Wikimedia is adopting present value rule for showing this current asset. As per the US Treasury rate, fair value of contribution of receivable has been calculated. (B) Receivables This NPO has also shown receivables $ 0.35 M on June 2010. It means Wikimedia has some of advance s who have power to get live feed of its websites. Just like, you can see my website's live feed right side for RSS icon. But Wikimedia gets fees for this. Some of s, organisation has to get fees, so, this is the asset of this organisation. But due to organisation is NOP, so it can not charge interest on it otherwise, due amount and interest will both be the asset of any company. (C) Deferred Revenue Deferred revenue are $ 0.13 M. These are the advance fees which Wikimedia corporation got from s for showing live feed for its websites. Because it does not provide services and got money, so it has been shown in liability side. (D) Net Assets For its balance sheet, we come to know that it has divided its net assets into two part. i) Unrestricted Assets It means, maximum donation and other assets which has received in cash or in-kind, are unrestricted. Organization can use any part of its mission. (F) Temporary Restricted Assets Money and current assets can be used on some restriction. It means specific cash can be used for specific part of mission of organisation. 2nd Statement of Activities Statement of activities is just like income and expenditure statement of Wikimedia. Everything in it is simple to understand. But as of Wikipedia, I am interested to know the total operating cost for operating Wikipedia website. $10.2 millions are its total expenditures and its total revenue is $ 17.9 million. It means net surplus of $ 7.7 million which is still very very low from for-profit organisation like Google other. So, we have to come forward to donate to this great and educational not-for-profit organisation. 8

3rd Cash Flow Statement For calculating cash from operation, organisation has adjusted donation of common stock and donation of equipment because both are non cash revenue part of organisation. For knowing net cash flow from operation, we need to adjust non-cash operating items. When it has made its statement of activities, all outstanding expenses are added in expenses, it means surplus on accrual basis. Now as per cash basis, it has deducted from net surplus. When it has made its statement of activities, all advance but cash expenses are deducted and now we will deduct all these advance expenses. Like this some advance and outstanding incomes have been adjusted. All other things of cash flow of this organisation is easy to understand.

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