Concepts of Share Capital
Authorized capital is the maximum amount of share capital a company is authorized to issue…
Accounting for Share Capital
12th Accountancy
Accounting for Share Capital
Over-Subscription of Shares
Subscription of shares can be more than the number of shares offered or less than that…
Accounting for Share Capital
Issue of Shares at Premium
When company issues shares for a price that is more than its face value, shares…
Accounting for Share Capital
Shares Issued to Vendor and Buy-Back
Sometimes, company purchases assets and makes the payment to the vendor…
Retirement of Partner
Capital Accounts of Partners on Retirement
Partners’ Capital accounts can be fixed or fluctuating depending on the question.
Admission of New Partner
Capital Accounts of Partners on Admission
Capital accounts of the partners can be one in case of fluctuating capitals or two i.e. capital accounts and current accounts in case of fixed capitals.
Change in Profit Sharing Ratio
Treatment of Accumulated Profits and Losses
If the partners decide not to share these profits or they don’t want to disturb the existing profits or …
Change in Profit Sharing Ratio
Revaluation Account of Partnership Firm
Revaluation account is a nominal account prepared for the purpose of distributing and transferring …
Change in Profit Sharing Ratio
Sacrifice Ratio
Sacrificing ratio = Old Profit sharing ratio – New Profit sharing ratio [Sacrifice=old share-new share]
Change in Profit Sharing Ratio
Gaining Ratio
Gaining ratio = New Profit sharing ratio – Old Profit sharing ratio [Gain=New share-Old share]