Mohit Saxena classes

 Q.What is the meaning of life insurance? Explain its main features and objectives.  Answer:- Introduction  Whoever is born, their death is certain. But it is uncertain when any person will die. However, some people think about what will happen to their dependent family if they die suddenly. And how will they face financial problems? To overcome this problem, they take out life insurance.  Meaning of Life Insurance  In simple words, life insurance refers to such insurance that is taken out with the objective of getting protection from the loss caused by death. Under this, the insurance company promises to pay a certain amount to the legal heir of the insured person after a fixed period in exchange for a fixed premium.  Features of Life Insurance  The main features of life insurance are as follows:  1. Life insurance is taken with the objective of compensating for losses arising due to death.  2. Life insurance is a contract.  3. Life ins...

 Q.What is Reinsurance? What is the difference between Reinsurance and Double Insurance?  Meaning of Reinsurance  Reinsurance refers to a type of insurance contract that is executed between two insurers regarding the same asset. The main objective of this type of insurance is to reduce additional risk for one insurer by transferring it to another insurer.  The person who gets the original insurance is called the original insurer/ the Principal Insurer, and the person who provides the reinsurance is called the Reinsurer.  For Example: - If Ram insures his asset worth ₹1,00,000 with Shyam Insurance Ltd., and Shyam Insurance Ltd. then takes out insurance for ₹50,000 of that same asset from Ghanshyam Insurance Ltd., then in that situation, the ₹50,000 insurance taken by Shyam Insurance Ltd. from Ghanshyam Insurance Ltd. will be called Re-insurance.  And if in the future, Ram's property worth ₹100,000 is destroyed by fire, then in that case, Ram will receive ₹10...

Q. Define Insurance, and describe the principles of insurance in detail.  Answer:-Meaning of Insurance  Characteristics of Insurance  Definition of Insurance  Various definitions given by different scholars regarding insurance are as follows:  According to MacGill, insurance is a process through which certainty is established in place of uncertainty.  Principles of Insurance  Related to Insurance The principles of insurance can be divided into the following two parts:  1. Principles of Insurance  2. Principles of Insurance Contract  1.Principles of Insurance: The main principles of insurance are as follows, meaning insurance is based on the following two principles:  1. Principle of Cooperation: This principle is based on the assumption that all are for one and one is for all. This means that in insurance, every individual deposits a fixed amount annually. And if any individual suffers loss due to risk, then that loss is compensated...

 02. Define insurance? And clarify its characteristics.  Meaning of Insurance  insurance refers to a contract under which one party promises to protect the other party in case of loss, and the person who promises to protect the other party from loss is called the Indemnifier, and the person who receives the promise of protection from loss is called the Indemnity holder.  Characteristics of Insurance  The main characteristics of insurance are as follows:  1. Contract: Insurance is a contract.  2. Elements of a Valid Contract: In insurance, all the elements of a valid contract are essential, such as proposal, acceptance, valid consideration, capacity of parties, and lawful object etc. 3. Principle of Indemnity: The principle of indemnity is very important in insurance.  4. Wide Scope: The scope of insurance is very wide, under which various types of insurance are included.  For example:-Life insurance, Fire insurance, Marine insurance, Social i...

 Q1.What do you understand by risk? Explain the various methods of risk management. Meaning of Risk Risk is the first and most important element of business, without risk no business can be imagined. In simple words, risk means the possibility of loss. any work in which there is a possibility of loss is called a risky work. Classification of Risk Risk can be classified into the following two parts: 1. Speculative Risk 2. Pure Risk 1. Speculative Risk :- Speculative risk refers to those risks where there is a possibility of both profit and loss. For example, if a person starts trading in the stock market by investing ₹10,000, then in that situation, there is a possibility of both profit and loss. This is because if the market rises. Then in that situation, there will be profit and if the market falls. In that situation, there will be loss. The risk of profit and loss in market is speculative risk 2.Pure Risk:- Pure risk refers to those risks where is only and only a possibility o...

 Q.What are Final Accounts? Explain with major adjustments.  Answer:- The main objective of preparing final accounts for any businessman is to gain knowledge of the profit and loss and the financial position of the business.  Under this, to ascertain the profit and loss of the business, a Profit and Loss Account and to ascertain the financial position of business a Balance Sheet are prepared . Furthermore, there are some items whose transactions cannot be fully or partially recorded by the end of the year. Thus, recording these transactions according to the rules is called adjustment.  Major adjustments are as follows:  1. Outstanding Expenses  2. Prepaid Expenses 3. Accrued Income  4. Unearned Income   5. Interest on Capital  6. Interest on Drawings  7. Bad Debts  8. Provision for Bad Debts  9. Provision for Discount on Debtors  10. Provision for Discount on Creditors  11. Depreciation  12. Closing Stock...

 Q3.What is the difference between External Reconstruction and Internal Reconstruction?  Answer:- Before understanding the difference between External Reconstruction and Internal Reconstruction, it is extremely important to understand the meaning of Reconstruction.  Meaning of Reconstruction  The main objective of reconstruction is to write off the losses of previous years and obtain additional working capital.  Types of Reconstruction  Reconstruction is of the following two types:  1. Internal Reconstruction  2. External Reconstruction  1. Internal Reconstruction: When neither a company is wound up nor a new company is formed, this is called Internal Reconstruction, because under this, the internal structure of the company changes.  Types of Internal Reconstruction  Internal Reconstruction is of the following types:  1. By increasing share capital.  2. By decreasing share capital.  2.External Reconstruction  Whe...

 Q2. What is purchase consideration according to Accounting Standard 14? How is it calculated? Meaning of Purchase Consideration  According to Accounting Standard 14, purchase consideration refers to the sum of shares issued and cash paid by the Transferee Company to the shareholders of the Transferor Company.  In simple words, the amount paid by the Transferee Company to acquire the business of the Transferor Company is called Purchase Consideration.  Transferor Company refers to a company that is amalgamated.  Transferee Company refers to a company in which amalgamation takes place.  Methods of Determining Purchase Consideration  The main methods for determining purchase consideration are as follows:  1. Total Payment method/Lump Sum Payment Method  2. Net Assets method  3.Net Payment Method  1. Total Payment method/ lump sum payment method :- if the purchase consideration is determined based on this method, then in this case, the...

 Q.What do you understand by the amalgamation of companies? Explain its merits and demerits. How many types are there?  Introduction /meaning of merger The present era is an era of competition, and every company strives to face this competition and prefers to work together. And if a company wants to do business with another company, then in that situation, it can merge with another company or acquire shares of another company.  Types of merger  (Merger) Merger is of the following two types:  1. Amalgamation (Amalgamation)  2. Absorption (Acquisition)  1.Amalgamation :  In simple words, when two or more companies cease to exist and a new company is formed, it is called Amalgamation.  2.Absorption : In simple words, when one or more existing companies cease to exist and a new company is not formed, it is called amalgamation.  Amalgamation of any company occurs only when an existing company buys another existing company.  Objectiv...

 Q.What is consolidated balance sheet and what are the points to note while preparing the consolidated balance sheet. a consolidated balance sheet refers to a statement prepared collectively by companies.  Points to Note While Preparing a Consolidated Balance Sheet  The main points to note while preparing a consolidated balance sheet are as follows:  1. When preparing a consolidated balance sheet, one should first determine which is the holding company and which is the subsidiary company.  A holding company refers to a company that acquires shares. And a subsidiary company refers to a company that sells shares.  2. When preparing a consolidated balance sheet, goodwill or capital reserve and minority interest should be calculated.  The interest of minority shareholders refers to the interest of those shareholders of the subsidiary company whose shares have not been purchased by the holding company.  3. When preparing a consolidated balance sheet, t...