What is finance lease?
What are bonus Shares? entry for it.
What is Depreciation? What is the Journal Entry?
What is DPS?
What is minority Interest? where it is shown?



What is finance lease? What are bonus Shares? entry for it. What is Depreciation? What is the Jour..

Answer / Sulabh Dhawan

1. Finance Lease: A financial agreement where a lessor (owner) provides an asset to a lessee (user) for a period of time in exchange for periodic payments. The lessee has the right to use the asset but does not own it.

2. Bonus Shares: Additional shares issued by a company to its existing shareholders as a reward or incentive, often based on their holding period or performance of the company.
- Journal Entry: Debit Securities (Bonus Share Account) and Credit Capital Reserves (Bonus Reserve Account).

3. Depreciation: The systematic allocation of the cost of an asset over its useful life, reflecting the decline in its value due to wear and tear or obsolescence.
- Journal Entry: Debit Fixed Assets and Credit Accumulated Depreciation.

4. DPS (Dividend Per Share): The amount of dividend paid out by a company per share of stock owned by a shareholder.

5. Minority Interest: The portion of a subsidiary's equity that is not owned by the parent company or its majority shareholders. It represents the interest of minority shareholders in the subsidiary.
- Shown in the consolidated financial statements under non-controlling interests.

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