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26951.

Why as 'second' has been defined in terms of periods of radiation from caesium-133?

Answer»

 Second has been defined in terms of periods of radiation caesium-133, because

(i) this period is accurately defined

(ii)  this period is not affected by changes of place, time and physical conditions like temperature.

(iii) the unit is easily reproducible in any good laboratory.

26952.

Give reason: Hot water when poured in glass beaker, it cracks.

Answer»

1. When hot water is poured in a glass beaker the inner surface of the glass expends on heating.

2. Since glass is a bad conductor of heat, the heat from inside does not reach the outside surface so quickly.

3. Hence the outer surface does not expand thereby causing a crack in the glass.

26953.

Is the bulb of a thermometer made of diathermic or adiabatic wall?

Answer»

Adiabatic wall is Diathermic

26954.

Why do two layers of cloth of equal thickness provide warmer covering than single layer of cloth of double the thickness?

Answer»

The two layers of cloth traps air between them. Air is bad conductor of heat. 

∴ The air trapped provide heat insulation

26955.

Why are woolen clothes felt warmer than cotton clothes?

Answer»

Woollen clothes with fur trap a layer of dry air on their surface. This layer prevents body heat to escape and we feel warmer

26956.

What kind of thermal conductivity and specific heat requirements would you specify for cooking utensils?

Answer»

The cooking utensils at home are mainly made of high-grade stainless steel. Depending on the carbon content, the quality and the grade of steels are made. This makes steel a widely household material these days. 

The properties that are to be taken care of while casting cooking utensils are :

(i) thermal conductivity (ii) specific heat.

26957.

A glass full of hot milk is poured on the table. It begins to cool gradually. Which of the following is correct? (a) The rate of cooling is constant till milk attains the temperature of the surrounding. (b) The temperature of milk falls off exponentially with time. (c) While cooling, there is a flow of heat from milk to the surrounding as well as from surrounding to the milk but the net flow of heat is from milk to the surounding and that is why it cools.(d) All three phenomenon, conduction, convection and radiation are responsible for the loss of heat from milk to the surroundings.

Answer»

(b) The temperature of milk falls off exponentially with time. 

(c) While cooling, there is a flow of heat from milk to the surrounding as well as from surrounding to the milk but the net flow of heat is from milk to the surounding and that is why it cools.

(d) All three phenomenon, conduction, convection and radiation are responsible for the loss of heat from milk to the surroundings

26958.

Why are cooking utensils made of metals of high thermal conductivity?

Answer»

The high conductivity metals conduct heat uniformly and help in preparation of meals quickly.

26959.

A steel tape 1m long Is correctly calibrated for a temperature of 27.0°C. The length of a steel rod measured by this tape Is found to be 63.0 cm on a hot day when the temperature is 45.0°C. What is the actual length of the steel rod on that day? What is the length of the same steel rod on a day when the temperature is 27.0° C? Coefficient of linear expansion of steel = 1.20 × 10-5K-1.

Answer»

l0 = 63 cm 

∆T = 45°C – 27°C . 

= 18°C = 18 K 

α = 1.2 × 10-5K-1 

l = l0 (1 + α ∆T) 

= 63(1 + 1.2 × 10-5 × 18) 

l = 63.0136 cm.

∴ Actual length of the steel rod at 45°C = 63.0136 cm 

At 27°C, the steel tape is correctly calibrated. 

∴ the length of the steel rod = 63.0 cm

26960.

A steel tape 1 m long is correctly calibrated for a temperature of 27.0°C. The length of a steel rod measured by this tape is found to be 63.0 cm on a hot day when the temperature is 45.0°C. What is the actual length of the steel rod on that day? What is the length of the same steel rod on a day when the temperature is 27.0°C? Coefficient of linear expansion of steel = 1.20 x 10-5°C-1.

Answer»

The length of the steel tape of 27°C is 100 cm

∴ L = 100 m and T = 27°C

∴ Its length at 45°C

L' = L + ΔL

= L + α x L x ΔL

= 100 + 1.2 x 10-5 x 100 x (45 - 27)

= 100.0216 cm

∴ The length of 63 cm measured by this tape at 45°C will actually be

= {100.0216}/{100} x 63 = 63.0136 cm

Length of the same steel rod shall again be 63 cm when measured by the same tape at 27°C.

26961.

Find out the increase in moment of inertia I of a uniform rod (coefficient of linear expansion α) about its perpendicular bisectors when its temperature is slightly increased ∆T.

Answer»

M.I. about its axis along perpendicular bisector

= \(\frac{1}{12}\) ml2

When temperature increased by ∆T, length of rod increases.

∆l = lα∆T

∴ New M.I., I1 = \(\frac{M}{12}\) (l + ∆l)2 = \(\frac{M}{12}\) (l2 + ∆l2 + 2l∆l)

Neglecting (∆l)2 (very very small quantity) – 

I1 = \(\frac{M}{12}\) (l2 + 2l∆l)

= \(\frac{Ml^2}{12}+\frac{Ml∆l}{6}\) = I + \(\frac{Ml∆l}{6}\)

Therefore, moment of inertia, increase.

∆I = I1 − I = \(\frac{M_l∆l}{6}\)

= 2( \(\frac{Ml^2}{12}\) )\(\frac{∆l}{l}\)

∆l = 2l ∝ ∆T.

26962.

Why are budding, fragmentation and regeneration, all considered to be asexual type of reproduction ?

Answer»

Because all these methods involves a single parent for the production of a new organism, without the involvement of gametes.

26963.

How does the creation of variations in a species promote survival?

Answer»

Variations increases the adaptability of an organism to its changing environmental conditions. 

26964.

70% of individuals in a population of hydra show long tentacles whereas 10% of individuals in the same population show short tentacles. Which trait is likely to have arisen earlier ?

Answer»

Long tentacles.

26965.

State whether the following statement is true or false : Human beings have evolved from chimpanzees.

Answer»

This statement is False.

26966.

In evolutionary terms, can we say which among bacteria, spiders, fish and chimpanzee have a 'better' body design ? Why or why not ?

Answer»

In evolutionary terms, the chimpanzee has the most complex body design but it will be wrong to say that they have a better body design as all the organisms are very well adapted to their environment and have their body designs evolved according to their body adaptation.

26967.

What are fossils? What do they tell us about the process of evolution?

Answer»

Usually when organisms die, their bodies will decompose and be lost. But every once in a while, the body or at least some parts may be in an environment that does not let it decompose completely. If a dead insect gets caught in hot-mud, for example, it will not decompose quickly, and the mud will eventually harden and retain the impression of the body parts of the insect. All such preserved traces of living organisms are called fossils.
Fossils explain about the extinct species every existed.

26968.

Fill in the blanks: (a) Longer line in the symbol for a cell represents its ..........terminal. (b) The combination of two or more cells is called a .........(c) When current is switched ‘on’ in a room heater, it..........(d) The safety device based on the heating effect of electric current is called a.........

Answer»

(a) Longer line in the symbol for a cell represents its positive terminal. 

(b) The combination of two or more cells is called a battery. 

(c) When current is switched ‘on’ in a room heater, it becomes hot. 

(d) The safety device based on the heating effect of electric current is called a fuse.

26969.

What are fossils? What do they tell us about the process of evolution?

Answer»

When organisms die, their bodies decay and decompose. But every once in a while, the body or at least some parts may be in an environment that does not let it decompose completely. If a dead insect gets caught in hot mud, for example, it will not decompose quickly, and the mud will eventually harden and retain the impression of the body parts of the insect. All such preserved traces of living organisms are called fossils.
The fossils tell us the following:
(i) It helps to identify an evolutionary, relationship between apparently different species.
(ii) The fossils present in the bottom rocks are simple while the most recent fossil found in the upper strata are highly complex. This geographical succession completely agrees with the concept of evolution.

26970.

Why does a magnetic compass needle pointing North and South in the absence of a nearby magnet gets deflected when a bar magnet or a current carrying loop is brought near it. Describe some salient features of magnetic field lines concept.

Answer»

A magnetic compass needle pointing North and South shows deflection when a bar magnet or a current carrying loop is brought near it. This happens because the magnetic fields of the compass needle and the bar magnet (or current carrying loop) interact with each other.

Salient features of magnetic field lines:- 

a. Magnetic field lines follow the direction from the North Pole to the South Pole. 

b. Magnetic field lines always show concentric pattern. 

c. Magnetic field lines do not cross one another. 

d. Closer the field lines; stronger is the magnetic field and vice-versa is also true. 

e. Magnetic field lines are closer near the poles; which shows greater strength of magnetic field near the poles.

26971.

Will the compass needle show deflection when the switch in the circuit shown by Fig. is closed?

Answer»

No, the compass needle will not show deflection even though the switch is closed, because there is no source of electric current.(Battery or cell) An electric cell or battery needs to be connected here. In the absence of electric.’ current, there is no magnetic field produced by the wires, Hence there is no deflection.

26972.

When the current is switched on through a wire, a compass needle kept nearby gets deflected from its north-south position. Explain.

Answer»

The current carrying wire produces magnetic field around it. When a compass is kept nearby this wire, the two magnetic field (magnetic field due to wire and magnetic field due to compass) interact each other causing deflection in magnetic needle. When the current is switched off, there is no magnetic field produced by the wire, magnetic needle does not deflect from its north-south position.

26973.

Name any two effects of electric current

Answer»

Heating Effect of current: When an electric current passes through a wire, the wire gets heated. This is known as the heating effect of current. Which is used in many heating applications like electric heater, electric ion, light bulb etc.
Magnetic Effect of current: When an electric current flows through a wire, it generates magnetic field around it. This effect is called magnetic effect of current. Magnetic Effect of electric current has many applications like power lift, electric bell, electric fan etc.
 

26974.

What is meant by magnetic effect of electric current?

Answer»

When an electric current passes through a wire, it behaves like a magnet. This is the magnetic effect of the electric current. If the electric current does not passes through, it loses its magnetic efffect. These coils of wire is called electromagnets.

26975.

Class 7 Science MCQ Questions of Electric Current and Its Effects with Answers?

Answer»

Practice the Class 7 Science MCQ Questions of Electric Current and Its Effects with Answers. MCQ Questions for Class 7 Science with Answers were arranged dependent on the most recent pattern of the exam. We have Provided Electric Current and Its Effects Class 7 Science MCQ Questions with Answers to help understudies comprehend the idea well indeed. 

You can refer to NCERT Solutions for Class 7 Science Electric Current and Its Effects to overhaul the ideas in the syllabus viably and work on your shots at getting excellent marks in your board tests. Understand your preparation level of multiple choice Questions for Class 7 with Answers. You can in like manner check your answers from our offered Multiple Choice Questions to Class 11 with Responses.

Practice MCQ Questions for Class 7 Science

1. In making a battery

(a) positive terminal of one cell is connected to the negative terminal of the next cell
(b) positive terminal of one cell is connected to the positive terminal of the next cell
(c) negative terminal of one cell is connected to the negative terminal of the next cell
(d) none of the above

2. Where can the key or switch be placed in the circuit?

(a) Left side of the battery
(b) Right side of the battery
(c) Can be placed anywhere in the circuit
(d) Near the positive terminal of the bulb

3.The coil of wire contained in an electric heater is known as

(a) component
(b) element
(c) circuit
(d) spring

4. Which mark is necessary on electric appliances?

(a) AGMARK
(b) ISI
(c) FICCI
(d) KSK

5. When a switch is in OFF position.

(i) circuit starting from the positive terminal of the cell stops at the switch.
(ii) circuit is open.
(iii) no current flows through it.
(iv) current flows after some time.

Choose the combination of correct answer from the following:

(a) all are correct
(b) (ii) and (iii) are correct
(c) only (iv) is correct
(d) only (i) and (ii) are correct

6. Which of the following precautions need not be taken while using electric gadgets / appliances/circuit?

(a) We should never touch a lighted electric bulb connected to the mains.
(b) We should never experiment with the electric supply from the mains or a generator or an inverter.
(c) We should never use just any wire or strip of metal in place of a fuse.
(d) We should never turn the switch in ON position

7. The soft-iron core of an electromagnet loses its magnetism once the current passing through the electromagnetic coil stops because.

(a) Domains lose their alignment when the current is stopped
(b) Iron cannot hold alignment for longer time even when the current is passing through the coil
(c) Magnetic properties of iron are weak
(d) Domains inside the iron get aligned in north to south direction

8. A __ is used in torches.

(a) Generator
(b) Fuse
(c) Secondary cell
(d) Dry cell

9. An element measure the flowing an electric current is:

(a) voltmeter
(b) filament
(c) circuit
(d) ammeter

10. Electromagnet is used in

(a) Battery
(b) Dry cell
(c) Electric bell
(d) Fuse

11. The bulb glows only when ................. flows through it.

(a) Current
(b) Light
(c) Air
(d) Water

12. An element measure the potential difference between two points in an electric circuit is:

(a) voltmeter
(b) filament
(c) circuit
(d) ammeter

13. A device which prevents or allows the current to flow through it

(a) Motor
(b) Terminal
(c) Conductor
(d) Switch

14. Electric current has energy called:

(a) voltmeter
(b) filament
(c) electrical energy
(d) none of these

15. The metal which is poor conductor of electricity is

(a) Gold
(b) Iron
(c) Aluminium
(d) tungsten

16. The amount of heat produced in a wire depends on its material-

(a) Length
(b) Thickness
(c) Length and thickness
(d) None of these

17. If a piece of soft iron is placed inside the coil n number of turns and current is passed in the coil from a battery, what name is then given to the device so obtained ?

(a) spectrometer
(b) gravitometer
(c) barometer
(d) electromagnet

18. If the coil in a simple generator is wound around a soft iron core then:

(a) strength of magnetic field increases.
(b) current produced will be increased.
(c) voltage produced will be increased
(d) all

19. In a bulb there is a thin wire called

(a) filament
(b) coil
(c) element
(d) fuse wire

20. A glowing bulb becomes warm due to the

(a) heating effect of current
(b) magnetic effect of current
(c) chemical effect of current
(d) physical effect of current

21. Which of the following is being used in place of fuses?

(a) MCB
(b) Nichrome
(c) Filament
(d) Switch

22. When electric current passes through a wire, it behave like a

(a) battery
(b) magnet
(c) fuse
(d) compass needle

23. Fuse wire is generally made of

(a) tin and lead
(b) nickel and chromium
(c) nickel and copper
(d) chromium and silver

24. Coils of heating devices are made up of

(a) Mercury
(b) Nichrome
(c) Copper
(d) Tungsten

25. When electric current flows through a conductor, some amount of:

(a) electrical energy is converted into heat energy
(b) electrical energy is converted into mechanical energy
(c) mechanical energy is converted into electrical energy
(d) heat energy is converted into electrical energy

Answer:

1. Answer: (a) positive terminal of one cell is connected to the negative terminal of the next cell

Explanation: The positive terminal of one cell is connected to the negative terminal of the next cell. Such a combination is called a battery.

2. Answer: (c) Can be placed anywhere in the circuit

Explanation:  The key or Switch can be placed anywhere in the electric circuit.

3. Answer: (b) element

Explanation: An electric room heater or an electric heater used for cooking contains a coil of wire. The coil of wire used in electric heaters is called a heating element.

4. Answer: (b) ISI

Explanation: ISI mark is the mark necessary for appliance approval.

5. Answer: (b) (ii) and (iii) are correct

Explanation: When the switch is off, the circuit is in open position and current does not flow through the circuit as the circuit is not complete. So, the correct options are (ii), (iii).

6. Answer: (d) We should never turn the switch in ON position

Explanation: We should never turn the switch in ON position.

7. Answer: (a) Domains lose their alignment when the current is stopped

Explanation: As the current in coil flows due to electromagnetism, it behaves as magnet then the elementary magnets of soft iron core get attracted and on stopping current elementary magnets lose alignment.

8. Answer: (d) Dry cell

Explanation: A common dry cell used in torches consists of a rod surrounded by a chemical paste in a metal case.

9. Answer: (d) ammeter

Explanation: The ammeter is used to measure, the rate at which the electrons flow through the globes and the voltmeter measures the potential drop that is actually the loss in potential energy as the electricity moves through the filament.

10. Answer: (c) Electric bell

Explanation: An electric bell is a mechanical or electronic bell that functions by means of an electromagnet. When an electric current flows through the coils, the electromagnet creates a magnetic field which pulls the armature towards it, causing the hammer to strike the bell.

11. Answer: (a) Current

Explanation: The bulb glows only when current flows through the circuit and current heats the filament of bulb and bulb gives light.

12. Answer: (a) voltmeter

Explanation: The energy is transferred to the electrical components in a circuit when the charge carriers pass through them. We use a voltmeter to measure potential difference (or voltage). The potential difference (which is the same as voltage) is equal to the amount of current multiplied by the resistance.

13. Answer: (d) Switch

Explanation: A switch prevents or allows current to flow through it. It is a device used for making and breaking connections in an electric circuit. For example, when anyone presses the button (switch) for light/fan, with the completion of the circuit, the device starts to function.

14. Answer: (c) electrical energy

Explanation: Electrical energy is caused by moving electric charges called electrons. The faster the charges move, the more electrical energy they carry. As the charges that cause the energy are moving, electrical energy is a form of kinetic energy.

15. Answer: (d) tungsten

Explanation: Tungsten is a poor conductor of electricity even though it is a metal. But at high temperatures, it will conduct electricity. As discussed above, it has a high melting point. Therefore, high temperature doesn't have any bad effect on Tungsten.

16. Answer: (c) Length and thickness

Explanation: Amount of heat produced in wire = I2

Where R = Resistance of wire

I = Current through wire

As resistance of wire \(R\propto \frac{L}{A}\)

So heat produced depends on Length as well as thickness.        

17. Answer: (d) electromagnet

Explanation: A solenoid is a long coil containing a large number of close turns of insulated copper wire wound on a conducting or non-conducting material. In this case, we consider a coil wound on a soft iron bar called the core.When the circuit is closed by pressing the key, a steady current flow through such a device, the magnetic fields produced by the solenoid are similar to the magnetic field produced by a magnet and hence it is called as an Electromagnet.The strength of an electromagnet is related to factors stated below:

(i) Directly proportional to the number of turns in the coil.

(ii) Directly proportional to the current flowing in the coil. 

(iii) Inversely proportional to the length of air gap between the poles.

18. Answer: (d) all

Explanation: Voltage/current produced in a generator can be increased by: 

(a) Using a powerful electromagnet to make the magnetic field stronger in place of a permanent magnet.
(b) By winding the coil round a soft iron core to increase the strength of magnetic field.
(c) By using a coil with more turns.
(d) By rotating the coil faster.
(e) By using a coil with a larger area.

19. Answer: (a) filament

Explanation: An incandescent light bulb has a small thin wire with two bigger wires holding it up. This wire is called a filament. The filament is the part of the light bulb that produces light. Filaments in incandescent light bulbs are made of tungsten.

20. Answer: (a) heating effect of current

Explanation: Glowing electric bulbs becomes warm due to the heating effect of electric current. The current flowing through the filament of the bulb heats up the filament due to Joules heating and the bulb glows. The heat that is responsible for the production of light in the filament heats up the bulb.

21. Answer: (a) MCB

Explanation: These days MCBs (miniature circuit breakers) are used in place of electric fuses. They are switches which turn off automatically when current exceeds safe limit.

22. Answer: (b) magnet

Explanation: When an electric current flows through a wire, it behaves like a magnet. „ A current carrying coil of an insulated wire wrapped around a piece of iron is called an electromagnet. The electromagnets are also used to separate magnetic material from the junk.

23. Answer: (a) tin and lead

Explanation: A fuse is an automatic means of removing power from a faulty system.So, metals with low melting point and high resistance are used to make a fuse wire. Therefore, tin or tin-lead alloy whose melting point is low will be used in making fuse wire.

24. Answer: (b) Nichrome

Explanation: Most heating elements use Nichrome 80/20 (80% nickel, 20% chromium) wire, ribbon, or strip. Nichrome 80/20 is an ideal material, because it has relatively high resistance and forms an adherent layer of chromium oxide when it is heated for the first time. Material beneath this layer will not oxidize, preventing the wire from breaking or burning out.Hence, nichrome is used as heating elements.

25. Answer: (a) electrical energy is converted into heat energy

Explanation: A conductor allows the flow of electrons through itself that produces electric current. But conductors also resist the flow of electrons to some extent. When electron flow is restricted, some of the energy of electrons is converted to heat energy instead of electrical energy.

Click here for Practice MCQ Questions for Electric Current and Its Effects Class 7

26976.

Name any two effects of electric current.

Answer»

Electric current has the following effect:

  • Electric current can give rise to heating and lighting.
  • Electric current can convert a straight conductor into a temporary magnet.
26977.

Mark ‘T’ if the statement is true and ‘F’ it is false:(a) To make a battery of two cells, the negative terminal of one cell is connected to the negative terminal of the other cell. (T/F)(b) When the electric current through the fuse exceeds a certain limit, the fuse wire melts and breaks. (T/F)(c) An electromagnet does not attract a piece of iron. (T/F)(d) An electric bell has an electromagnet. (T/F)

Answer»

(a) False

(b) True

(c) False

(d) True

26978.

The shortest wavelength in hydrogen spectrum of lyman series, when RH = 109678 cm-1 isa. 1002.7 Åb. 1215.67 Åc. 1127.30 Åd. 911.7 Å

Answer»

Correct option is d. 911.7 Å

26979.

Match the elements given in Column I with the colour they impart to the flame given in Column II.Column IColumn II(i) Cs(a) Apple green(ii) Na(b) Violet(iii) K(c) Brick red(iv) Ca(d) Yellow(v) Sr(e) Crimson red(vi) Ba(f) Blue

Answer» (i)→ (f), (ii) → (d), (iii) → (b), (iv) → (c)  (v)→ (e), (vi) → (a)
26980.

Why do beryllium and magnesium not impart colour to the flame in the flame test?

Answer»

All alkaline earth metals (except Be and Mg) impart a characteristic colour to the Bunsen flame. The different colours arise due to different energies . required for electronic excitation and de-excitation.
Be and Mg atoms, due to their small size, bind their electrons more strongly (because of .higher effective nuclear charge). Hence, they require high excitation energy and are not excited by the energy of the flame with the result that no flame colour is shown by them.

26981.

An element of group 2 forms covalent oxide which is amphoteric in nature and dissolves in water to give an amphoteric hydroxide. Identify the element and write chemical reactions of the hydroxide of the element with an alkali and an acid.

Answer» The element is beryllium
26982.

Lithium hydride can be used to prepare other useful hydrides. Beryllium hydride is one of them. Suggest a route for the preparation of beryllium hydride starting from lithium hydride. Write chemical equations involved in the process.

Answer»

8 LiH + Al2Cl6 → 2Li Al H4 + 6 LiCl

LiAl H4 + 2BeCl2 → 2BeH2 + LiCl + AlCl3

26983.

प्रकाश का प्रकीर्णन क्या है? प्रकीर्णन पर आधारित रमन प्रभाव क्या है? 

Answer»

प्रकाश का प्रकीर्णन- माध्यम के कणों द्वारा प्रकाश ऊर्जा को अवशोषित कर अन्य दिशाओं में पुनः विकरित करने की क्रिया को प्रकाश का प्रकीर्णन कहते हैं। बेन्जीन जैसे कार्बनिक द्रव पर प्रकाश के तीव्र किरण पुंज को डालकर उससे प्रकीर्णित प्रकाश का अध्ययन करते हुए देखा कि प्रकीर्णित प्रकाश में आपतित प्रकाश की आवृत्ति v की रेखा के अतिरिक्त उससे कम आवृत्ति (v – v1) (v – v2)… तथा उससे अधिक आवृत्ति (v + v1) (v + v2) …. की भी रेखाएँ प्राप्त होती हैं, जिन्हें स्टोक रेखाएँ तथा प्रतिस्टोक रेखाएँ कहते हैं। इस स्पेक्ट्रम को रमन स्पेक्ट्रम तथा इस प्रभाव को रमन प्रभाव कहते हैं।

26984.

यदि विरल तथा सघन माध्यम में प्रकाश की चाल क्रमशः v1 तथा v2 हों तथा सघन माध्यम में क्रांतिक कोण C है, तब(i) v1 = v2 sinC (ii) v1 = v2 cosC (iii) v1 = v2 tanC (iv) v1 = v2 cosec C

Answer»

(iv) v1 = v2 cosec C

26985.

Distinguish between Equity Shares and Preference Shares.

Answer»
PointsEquity SharesPreference Shares
1. MeaningShares that are not preference shares are called equity shares i.e. these shares do not have the preferential rights for payment of dividends and repayment of capital.Preferences shares are shares that carry preferential rights as to payment of:
  • Dividend and
  • Repayment of capital.
2. Rate of DividendEquity shares are given dividends at a fluctuating rate depending upon the profits of the company.Preference shareholders get dividends at a fixed rate.
3. Voting RightEquity shareholders enjoy normal voting rights. They participate in the management of their company.Preference shareholders do not enjoy normal voting right. They can vote only on matters affecting their interest.
4. Return of CapitalEquity capital can not be returned during the lifetime of the company, (except in case of buyback).A company can issue redeemable preference shares, which can be repaid during the lifetime of the company.
5. Nature of capitalEquity capital is known as ‘Risk Capital’.Preference capital is ‘Safe Capital’ with a stable return.
6. Nature of investorThe investors who are ready to take risks to invest in equity shares.Investors who are cautious about the safety of their investment invest in preference shares.
7. Face ValueThe face value of equity shares is generally ₹ 1/- or ₹ 10/- it is relatively low.The face value of preference shares is relatively higher i.e. ₹ 100/- and so on.
8. Right and bonus issueEquity shareholder is entitled to get bonus and right issue.Preference shareholders are not eligible for bonuses and right issues.
9. Capital appreciationThe market value of equity shares increases with the prosperity of the company. It leads to an increase in the value of shares.The market value of preference shares does not fluctuate, so there is no possibility/cheques of capital appreciation.
10. RiskEquity shares are subject to higher risk.Preference shares are subject to less risk.
11. TypesEquity shares are classified into:
  • Equity shares with normal voting rights.
  • Equity shares with differential voting rights.
Preference shares are classified as:
  • Cumulative Preference Shares
  • Non Cumulative Preference Shares
  • Convertible Preference Shares
  • Non Convertible Preference Shares
  • Redeemable Preference Shares
  • Irredeemable Preference Shares
  • Participating Preference Shares
  • Non Participating Preference Shares
26986.

What are equity shares?

Answer»

Equity shares are shares that do not preference shares and do not carry priority in receiving dividends nor repayment of capital.

26987.

Complete the sentences.1. The finance needed by business organisation is termed as ____2. The convertible preference shareholders have a right to convert their shares into _____3. Equity shareholders elect their representative Called ____4. Bonus shares are issued as gift to ____5. The bondholders are ________of the company.6. Depository receipt traded in a country other than USA is called ____7. First Industrial policy was declared in the year ______8. When goods are delivered by the supplier to the customer on the basis of deferred payment is called as ____

Answer»

1. Capital

2. Equity shares

3. Directors

4. Equity share holders

5. Creditors

6. Global Depository Receipt

7. 1948

8. Trade credit

26988.

What is a debenture?

Answer»

It is a document/instrument issued in the form of a debenture certificate under the common seal of the company acknowledging/evidencing the debt.

26989.

Study the following case/situation and express your opinion.The Balance sheet of a Donald Company for the year 2018-19 reveals equity share capital of Rs.25,00,000 and retained earnings of Rs. 50,00,000.(a). Is the company financially sound?(b). Can the retained earnings be converted into capital?(c). What type of source retained earning is?

Answer»

(a) The company is financially sound as it has double the amount as reserves or retained earnings or kept aside profits.

(b) Yes, the retained earnings can be converted into capital by means of capitalisation of reserves.

(c) Retained earning is self-financing or an internal source of finance.

26990.

Study the following case/situation and express your opinion:Mr. Rohit, an individual investor, invests his own funds in the securities. He depends on investment income and does not want to take any risk. He is interested in the definite rate of income and safety of the principal.(a). Name the type of security that Mr. Rohit will opt for.(b). What does he receive as a return on his investment?(c). The return on investment which he receives is fixed or fluctuating.

Answer»

(a) As Mr. Rohit does not want to take risks, he will opt for preference shares which will assure him of steady income and safety of his investment.

(b) Mr. Rohit will receive dividends in return.

(c) The return on his investment will be fixed and not fluctuating.

26991.

Study the following case/situation and express your opinion:Mr. Satish is a speculator. He desires to take advantage of the growing market for the company’s products and earn handsomely.(a). According to you, which type of share Mr. Satish will choose to invest in.(b). What does he receive as a return on investment?(C). State anyone, right he will enjoy as a shareholder.

Answer»

(a) As Mr. Satish is a speculator, he will choose equity shares to invest in because if there are good earnings/profits, so will be the rate of dividend.

(b) He receives a fluctuating rate of dividends.

(c) The right to attend the meeting and vote on resolutions can be the right Mr. Satish can exercise as a member.

26992.

What is a public deposit?

Answer»
  • Public deposit is an important source of financing short-term requirements of the company.
  • Companies generally receive public deposits for a period ranging from 6 months to 36 months.
  • Interest is paid by the companies on such deposits.
  • The company issues a’ Deposit Receipt’ to the depositor.
  • The receipt is an acknowledgment of debt/loan by the company.
  • Deposits are either secured or unsecured loans offered by a company.
  • It is considered a risky investment but investors can earn high returns on public deposits.

Advantages of deposits to the company:

  • It is an easier method of mobilizing funds during periods of credit squeeze.
  • The rate of interest payable by the company on public deposits is lower than the interest from banks and financial institutions.
  • It helps the company to borrow funds from a larger segment and thus, reduces dependence on financial institutions.
26993.

Explain the terms ‘Over-subscription’ and ‘Under-subscription’. How are they dealt with in accounting records?

Answer»

When the total number of applications received for shares exceeds the number of shares offered by the company to the public, the situation of oversubscription arises. A company can opt for any of the three alternatives to allot shares in ease of oversubscription of shares.

• Excess applications are refused and money received on excess applications is returned to the applicants. 

• The company can allot shares on pro-rata basis to all the share applicants. The excess amount received in the application is adjusted on the allotment. 

• In this case, the company follows a combination of both the method. It may reject some share applications and may allot some applications on the pro rata.basis.

Under-subscription: When the number of shares applied by the public is lesser than the number of shares issued by the company, then the situation of Undersubscription arises. As per the Company Act, the Minimum Subscription is 90% of the shares issued by the company. This implies that the company can allot shares to the applicants provided if applications for 90% of the issued shares are received. Otherwise, the company should refund the entire application amount received. In this regard, necessary Journal entry is passed only after receiving and refunding of the application money.

26994.

What is a preference Share’? Describe the different types of preference shares.

Answer»

Preference Shares: Section 85 of the Company Act, 1956 defines 

Preference Shares to be featured by the following rights: 

• Preference Shares entitle its holder the right to receive dividend at a fixed rate or fixed amount. 

• Preference Shares entitle its holder the preferential right to receive repayment of capital invested by them before their equity counterparts at the time of winding up of the company. 

Types of Preference Shares: 

1. Cumulative Preference Shares: When a preference shareholder has a right to recover any arrears of dividend, before any dividend is paid to the equity shareholders, then the type of Preference Shares held by the shareholder is known as Cumulative Preference Shares. 

2. Non-Cumulative Preference Share: When a preference shareholder receives dividend only in case of profit and is not entitled any right to recover the arrears of dividend, then the type of Preference Shares held by the shareholder is known as Non-Cumulative Preference Shares. 

3. Participating Preference Share: When a preference shareholder enjoys the right to participate in the surplus profit (in addition to the fixed rate of dividend) that is left after the payment of dividend to the equity shareholders, the type of shares held by the shareholder is known as Participating Preference Share. 

4. Non-participating Preference Share: When a preference shareholder receives only a fixed rate of dividend every year and do not enjoy the additional participation in the surplus profit, then the type of shares held by the shareholder is known as Non-Participating Preference Shares.

 5. Redeemable preference share: When a preference shareholder is repaid by the company after a certain specified period in accordance with the term specified in the Section 80 of Company Act of 1956, then the type of the shares held by him/her is known as Redeemable Preference Shares. 

6. Non-Redeemable Preference share: These shares are not repaid by the company during its lifetime. As per the Section 80A of the Company Act of 1956, no company can issue Non-Redeemable Preference Shares. It is merely a theoretical concept. 

7. Convertible Preference Share: The shareholders holding Convertible Preference Shares have a right to convert his/her shares into equity shares. 

8. Non-Convertible Preference Share: Unlike Convertible Preference Shares, the shareholders holding Non-Convertible Preference Shares do not enjoy the right to convert their shares into equity shares.

26995.

Describe the provisions of law relating to ‘Calls-in-Arrears’ and ‘Calls-in Advance’.

Answer»

Calls-in-Arrears: When a shareholder fails to pay the amount due on allotment or any subsequent calls, then it is termed as Calls-in-Arrears. The Company is authorised by its Article of Association to charge interest at a specified rate on the amount of Call in Arrears from the due date till the date of payment. If the Article of Association is silent in this regard, then Table A shall be applicable that is interest at 5% p.a. is charged from the shareholders.

As per the Revised Schedule VI of the Companies Act, Calls-in-Arrears are deducted from the Called-up Share Capital in the Notes to Accounts (that is prepared outside the Balance Sheet) under the head ‘Share Capital’. The final amount of Share Capital is shown on the Equity and Liabilities side of the Company’s Balance Sheet. The company can also forfeit the shares on account of non-payment of the calls money after giving proper notice to the shareholders.

Calls-in-Advance: When a shareholder pays the whole amount or a part of the amount in advance, i.e. before the company calls, then it is termed as Calls-inAdvance. The company is authorized by its Article of Association to pay interest at the specified rate on call in advance from the date of payment tiJI the date of call made. If the Article of Association is silent in this regard, then Table A shall be applicable that is, interest at 6% p.a. is provided to the shareholders.

As per the Revised Schedule VI of the Companies Act, Calls-in-Advance (along with interest on it) is added to the ‘Other Current Liabilities’ in the Notes to Accounts. The final amount of Other Current Liabilities is shown under the main head of ‘Current Liabilities’ on the Equity and Liabilities side of the Company’s Balance Sheet.

26996.

Describe the provisions of law relating to ‘Calls-in- Arrears’ and ‘Calls in Advance.

Answer»

Calls-in-Arrears The portion of called up capital which is not paid by the shareholder within a specified time is known as calls-in-arrears. In other words, when a shareholder fails to pay the amount due on allotment or any subsequent calls, then it is termed as call-in-arrears. The company is authorised by its Article of Association to charge interest at a specified rate on the amount of call-in-arrears from the due date till the date of payment. If the Article of Association is silent in this regard, then Table A shall be applicable that is interest at 5% pa is charged. 

It is deducted from the called-up share capital on the liabilities side of the Company’s Balance Sheet. The company can also forfeit the shares on account of non-payment of the calls money after giving proper notice to shareholders. Calls in Advance It means calls not due but paid by the shareholder in advance. Thus, the amount of future calls is received in advance by the company. In other words, when a shareholder pays the whole amount or a part of the amount in advance, i.e., before the company calls, then it is termed as calls in advance. The company is authorised by its Article of Association to pay interest at the specified rate on call in advance from the date of payment till the date of a call made. If the Article of Association is silent in this regard, then the Table A shall be applicable that is, interest at 6% pa is provided. It is shown under the heading of current liabilities on the liabilities side of the Company’s Balance Sheet.

26997.

Discuss the process for the allotment of shares of a company in case of over subscription.

Answer»

When the total number of applications received for shares exceeds the number of shares offered by the company to the public, the situation of oversubscription arises. A company can opt for any of the three alternatives to allot shares in case of oversubscription of shares.

• Excess applications are refused and money received on excess applications is returned to the applicants. 

• The company can allot shares on pro rata basis to all the share applicants. The excess, amount received in the application is adjusted on the allotment. 

• In this case, the company follows acombination of both the method. It may reject some share applications and may allot some applications on the pro rata basis.

26998.

What is meant by calls-in-advance? State the provisions of it under Companies Act.

Answer»

If there is provision in the Articles of Association, a company can receive in advance a part or . whole of the uncalled amount. Since the uncalled amount is received by company in advance from shareholders, the same is credited to the calls-in-advance’ account.

Calls-in-advance is not share capital of the company, hence dividends can not be given on it. It is compulsory to pay interest on calls-in-advance amount, uptil it is settled against the call is due for payment. On pre-decided rate specified in articles of the company. If articles of the company is silent on this matter, interest is payable 12% p.a. (maximum). The interest on calls-in-advance is payable compulsorily even if there is no profit.

26999.

According to Company Act, 2013- Section -17(4) and Rule 18(7) which type of companies debenture redemption reserve setup and 15% debenture redemption investment is not necessary?(A) Banking companies(B) Insurance companies(C) Electricity companies(D) Communication companies

Answer»

Correct option is (A) Banking companies

27000.

According to Companies Act 2013, to which account the amount of premium is transferred?

Answer»

As per Companies Act 2013, premium amount on debentures is transferred to Securities Premium Reserve Account.