By : Shivani Taya

€ This item appears under current assets in a balance sheet. .€ The mou ts due from customers who have been sold goods or services on credit.

€ Such allotment establishes the contractual relationship that underlies an investment through public subscription. .€ The acceptance of an application subscribing to the shares or other securities of a company.

€ The reduction of an amount at regular intervals over a certain time period. . € Also used to describe the accounting process of writing off an intangible asset. € Used to refer to the reduction of debt by regular payment of loan installments during the life of a loan.

. € (b) Issued capital: the amount sought to be raised by the issue of shares.€ Share capital: Is the amount raised by a company by issuing preference or equity shares. this cannot exceed the authorized capital. € The following terms pertain to this: € (a) Authorized (nominal) capital: the limit up to which shares can be issued.

€ (d) Paid-up capital: The amounts actually paid by shareholders and also credited as paid-up. € It comprises the face value of all the equity shares. retained earnings and the surplus received on issuing shares at a premium . € (e) Shareholders· equity: The net worth of the common stock holders of company.€ (c) subscribed capital: The amount up to which investors have committed to contribute.

€ Amount due from a debtor that is deemed irrecoverable. .

(eg.The financial guarantees and performance guarantees issued by banks on behalf of their clients. distribution. An advance received on an electrification contract). € A financial guarantee assures repayment of money. in the event of non completion of the contract by the client. The generation. . and utilization of electricity. € € (Electrification contract )The process of establishing a charge in an object.

€A scheme started in 1965 by ID I. to enable machinery manufacturers to receive timely payment on the sale of machinery even though the user may make deferred payments spread over 5-7 years. € The mechanism involves banks which discount the bills first and then get it rediscounted with ID I. .

has impressive track record of earnings and dividends.quality products and services.€A share of a company that is financially very sound. € Examples in India are Hindustan Lever .and is highly regarded for its competent management.

and is highly regarded for its competent management.€A share of a company that is financially very sound. € Examples in India are Hindustan Lever .quality products and services. has impressive track record of earnings and dividends.

€ The point where the revenues from a business operation equal the total costs (fixed + variable costs). a profit accrues when revenues exceed the EP. € Thus. € The break-even volume is computed by dividing the fixed costs by the difference between the selling price per unit (SP) and variable cost per unit (VC) .

€ An acronym for a technique of evaluating and rating the operations and performance of a bank in terms of Capital adequacy. Management. . Earnings. Liquidity and Systems for control. Asset quality.

8000/.then capital gain is Rs.and selling price is Rs. being the excess of selling price over the purchase cost. € Suppose purchase price was Rs. 2000/-.10000/. .€ The profit on a capital asset.

. € Examples are colgate-palmolive·s ¶colgate· tooth paste and reckitt and Colman·s ¶Dettol·.€A profitable business or government organization with regular cash flow because of the sustained demand or popularity of its product.

maintaining the exchange value of the domestic currency. . etc. superintendence and regulation of the commercial banks.€ The premier bank in a country that discharges the responsibilities of issuing currency. managing money supply by appropriate measures in order to maintain price stability and economic growth.

€A negotiable interest-bearing debt instrument of specific maturity issued by banks. and is issued at a discount from the face value. € The interest is the difference between the issue price and the face value which the holder receives at maturity . € It is a money market instrument having a maturity of less than 1 year.

. € Like other money market instruments. € CP may be issued to any person including individuals. unsecured promissory note issued by blue chip companies.€A short-term. it is issued at a discount on the face value and is freely marketable. banks and companies.

€ The liabilities that may arise as a result of some future event which. though possible. . € For example. is deemed unlikely. a court judgment on a pending lawsuit may impose a financial payment on a company.

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