shares is issued by a company to collect the funds from
people.If the share fund is not enough to the company they
issue the debentures.In shares the company will give some
percentange of the benefit to his shareholders,for the
depentures the company has to pay a certain percentage of
amount to his share holder.
Shares are issued by public limited companies for mobilizing
their capital.for which companies are paying dividend in
annualy or 6 months once.
Debentures are issued by public limited companies for
mobilizing additional capital and for which companies are
paying certain percentage of interest in annually.
Difference between shares & Debenture is :
Share holders eligible for voting ,bonus shares,Right issue
of shares and they are liable upto their shareholding to
companies liabilities in case of liquidation of the company.
where as debenture holders are investors like bank
depositors and they are eligible for interest and preference
in getting back their investments in case of insolvency of
the company.
share and debenture both are issued for collecting funds.but the difference is (1)when a person purchase shares he/she becomes the part owner of the company to the extent he purchased but but debenture holder are regarded as the long term creditor of the company.
The following are details of an invoice from a foreign
supplier of goods:
20 pieces of item X @ $ 20 per piece $ 400
20 pieces of item Y @ $ 5 per piece 100
Shippingcharges 40
Discount -80
Total $ 460
Total cost of above shipment of goods is Dh 2,300 which is
made up of Dh. 2,070
representing cost of transferring the above invoice amount
of $460 and the balance of Dh 230 represents other direct
costs
You are required to calculate the landed cost in Dirhams
for ONE PIECE of item X.
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