Accounts - 2. page

Forfeiture of shares – issued at Discount : When shares originally issued at discount are forfeited then discount on shares account should be cancelled. This can be done by crediting […]

Calls- in- Arrears Sometimes shareholders may fail to pay the amount due on calls. The total amount not received on the calls by the company are called as Calls-in-Arrears. This […]

Issue of Shares : The shares of the company can be issued in two ways; 1) for consideration other than cash and 2) for cash  

For consideration other than cash: Some times the company agrees to pay the vendors from whom it has bought assets like land and building, etc., fully paid up shares of […]

Issue of Shares for cash The procedure of issuing shares for cash is given below: 1. Issue of Prospectus When shares are issued to public for cash it should satisfy […]

Terms of Issue: Shares of a company may be issued in any of the following three ways; a) Issue of shares at par b) Issue of shares at premium and […]

Issue of shares at premium When a company issues its shares at a price more than the facevalue, it is said to be issued at premium. Premium is the excess […]

Issue of Shares at Discount : When a company issues its shares at a price less than the face value, it is said to be issued at discount. Discount is […]

Sources of Finance The company raises its finance through internal and external sources Internal Sources : It includes a) Share capital b) Undistributed profits of the companies. External Sources It […]

Share capital of a company : Part I Schedule VI of the Companies Act 1956 deals with this aspect. Every business is expected to have a capital. Generally ‘capital’ means […]