This category includes the explanation of shares and the journal entries relating to issues, forfeiture and re-issue of forfeited shares in different cases.
16
09, 2019
OTQs – Accounting for Share Capital
admingolden2020-01-04T20:33:45+00:00Subscribed Capital is a part of Issued Capital which the company has issued for cash or for consideration other than cash.
19
07, 2016
Employees Stock Option Plan – ESOP
admingolden2017-08-05T04:10:58+00:00Employees Stock Option Plan (ESOP) gives the employees and directors of a company an opportunity to purchase shares at a pre-determined but concessional price.
11
02, 2016
Share Capital – Concepts
admingolden2017-08-05T04:17:40+00:00Authorized capital is the maximum amount of share capital a company is authorized to issue by its Memorandum of Association. It is also called Nominal or Registered capital.
11
02, 2016
Equity Shares and Preference Shares
admingolden2019-07-02T17:42:38+00:00According to Section 43 of The Companies Act, 2013, an equity share is a share which is not a preference share, it means shares which do not enjoy any preferential right in the payment of dividend or repayment of capital, are termed as equity shares.
11
02, 2016
Terms of Issue of Shares
admingolden2017-08-05T04:30:43+00:00Shares can be issued to public, at par or at premium, but issue of shares at discount has been prohibited by Companies Act Section 53, except in case of Sweat Equity Shares.
11
02, 2016
Calls-in-Arrears and Calls-in-Advance
admingolden2019-10-10T18:17:05+00:00Shareholders can make all the money due on due date, before due date or after due date or not at all. There can be calls-in-arrears or calls-in-advance.
11
02, 2016
Subscription of Shares
admingolden2019-10-10T18:20:23+00:00Subscription of shares can be more than the number of shares offered or less than that. The situation can be over- subscription or under-subscription.
11
02, 2016
Issue of Shares at Premium
admingolden2017-08-05T09:15:19+00:00When company issues shares for a price that is more than its face value, shares are said to be issued at premium. Premium collected can be used only for particulars as prescribed by Companies Act.
11
02, 2016
Forfeiture and Re-issue of Forfeited Shares
admingolden2018-06-30T06:26:17+00:00Forfeiture means cancellation of shares due to non-payment of allotment money or call money, by the shareholders and retaining the amount already paid in respect those shares.
11
02, 2016
Shares Issued to Vendor and Buy-Back of Shares
admingolden2017-08-05T09:40:19+00:00Sometimes, company purchases assets and makes the payment to the vendor, in the form of fully paid shares of the company. These shares can also be issued either at par....