Cumulative preference shares
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Company AccountsQ-3 | Introduction to Company AccountsQuestion 4879 of 112
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Detailed Solution & Explanation
Cumulative preference shares:
They carry the right to cumulative dividends if the company fails to pay the dividend
in a particular year.
That is if for want of profit dividend is not paid the same gets accumu- lated and paid
as and when company earns.
All preference shares are always presumed to be cumulative unless the contrary is
stated in the terms of issue.
About This Chapter: Partnership & Companies
Paper
Paper 1: Accounting
Weightage
15-20%
Key Topics
Admission, Retirement, Death, Shares, Debentures
This chapter covers Admission, Retirement, Death, Shares, Debentures and is part of Paper 1: Accounting in the CA Foundation exam.
View Official ICAI SyllabusExam Strategy Tip
This topic carries 15-20% weightage. Focus on understanding core concepts rather than memorizing.
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