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Chapter 13 of 15
Revision Notes

Company : An Introduction

Telangana Open School (TOSS) · Class 12 · Accountancy

Quick revision notes for Company : An Introduction — Telangana Open School (TOSS) Class 12 Accountancy. Key concepts, formulas, and definitions for last-minute revision.

55 questions30 flashcards5 concepts

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Key Topics to Revise

1

Meaning and Characteristics of a Company

  • A company is a voluntary association of individuals formed to carry on business and earn profits.
  • It is created by law and is an artificial legal person with rights and obligations.
  • Key characteristics include: incorporated body, limited liability, perpetual succession, transferability of shares, and common seal.
2

Types of Companies

  • Companies are classified based on formation, liability, ownership, and commencement of business.
  • Statutory companies are formed by a Special Act of Parliament (e.g., RBI, LIC).
  • Registered companies are formed under the Companies Act 2013.
3

Shares and Share Capital

  • A company divides its capital into shares — each share is an indivisible unit of capital.
  • Two main types: Equity Shares and Preference Shares.
  • Equity shares: No fixed dividend, voting rights, residual claim on profits and assets.
4

Issue of Shares and Debentures

  • Shares can be issued in instalments: application, allotment, calls.
  • Full, under, and over subscription: company handles based on applications received.
  • Shares can be issued at par, premium, or discount.

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Full Notes

Key Concepts

A company is an artificial legalCompanies are classified based on formationA company divides its capital intoCompanies issue shares to raise ownershipA company prepares financial statements like

Frequently Asked Questions

What are the important topics in Company : An Introduction for Telangana Open School (TOSS) Class 12 Accountancy?
Company : An Introduction covers several key topics that are frequently asked in Telangana Open School (TOSS) Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Company : An Introduction — Telangana Open School (TOSS) Class 12 Accountancy?
Understand the core concepts first, then work through the 55 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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