Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Where will disclosures be given related to share capital of the company?

Options:

Balance Sheet

Statement of profit and loss

Notes to Accounts

None of these

Correct Answer:

Notes to Accounts

Explanation:

Disclosures relating to share capital are to be given in notes to accounts.
The following additions/modifications are significant:
a) For each class of shares, recognition of the number of shares outstanding at the beginning and at the end of the reporting period is required.
b) The rights, preferences and restrictions attached to each class of shares including restrictions on the distribution of dividends and repayment of capital.