Company Accounts

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Concept of Share Capital.

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Company Accounts

  1. 1. Sub:- Company Accounts Presented By:- Vilas Deshmukh Abhishek Agrawal
  2. 2.  Definition  Sec - 3(1)(i) and (ii) :- “A Company formed and registered under this Act or an existing company. An „Existing Company‟ means a company formed and registered Companies Act.” under any of the former
  3. 3. Incorporated Association Artificial Legal Person Transferability of Shares COMPANY Not a Citizen Limited Liability Common Seal Perpetual Existence
  4. 4. A Company, thus, may be defined as an incorporated association, which is an artificial legal person, having a separate legal entity, with a perpetual succession, a common seal, a common capital comprised of shares and carrying limited liability. transferable
  5. 5. SHARES  A share is the individual portion of the Company's capital owned by a share holder in the company.  The Act defines a share as a ' share' in the share capital of the company and it includes stock.  Each share has its own distinctive number.  Shares are classified as movable property, transferable in the manner specified by the Articles.
  6. 6. Shares Classification :- Shares Equity Preference
  7. 7. Share Capital Structure of Company Called up capital Authorized/ Registered Capital Issued Capital Unissued Capital Subscribed Capital Uncalled Capital Unsubscribed Capital Reserve Capital Paid-Up Capital UnpaidCapital
  8. 8. SHARE CAPITAL STRUCTURE OF HINDUSTAN UNILEVER LIMITED
  9. 9. PROCEDURE OF ISSUE OF SHARES 1 2 3 4 • Issue of prospectus • Application received • Allotment of share • calls
  10. 10. Other related Terms 1) CALLS IN ARREARS. 2) CALLS IN ADVANCE. 3) FORFEITURE OF SHARES. 4) REISSUE OF SHARES. 11
  11. 11. ISSUE OF SHARES  When Share Application Money is Received:Date 1  Particulars L.F Dr.Amt. By Bank A/c Dr. To Share Application A/c (being application money received) xxxxx - Cr.Amt. xxxxx When Share Application Money is Transferred:Date 1 Particulars By Share Application A/c To Share Capital A/c L.F Dr.Amt. Dr. (being application money transferred) xxxxx - Cr.Amt. xxxxx
  12. 12.  When Share Allotment money is Transferred:Date 1  Particulars By Share Allotment A/c To Share Capital A/c (being allotment money due) L.F Dr.Amt. Dr. xxxxx - Cr.Amt. xxxxx When Share Allotment Money is Received:Date 1 Particulars By Bank A/c Dr. To Share Allotment A/c (being allotment money received) L.F Dr.Amt. xxxxx - Cr.Amt. xxxxx
  13. 13.  When Share First call money is Transferred:Date 1  Particulars By Share First call A/c To Share Capital A/c (being first call money due) L.F Dr.Amt. Dr. xxxxx - Cr.Amt. xxxxx When Share First call Money is Received:Date 1 Particulars By Bank A/c Dr. To Share First call A/c (being first call money received) L.F Dr.Amt. xxxxx - Cr.Amt. xxxxx
  14. 14.  When Share Final call money is Transferred:Date 1  Particulars By Share Final call A/c To Share Capital A/c (being final call money due) L.F Dr.Amt. Dr. xxxxx - Cr.Amt. xxxxx When Share Final call Money is Received:Date 1 Particulars By Bank A/c Dr. To Share Final call A/c (being final call money received) L.F Dr.Amt. xxxxx - Cr.Amt. xxxxx
  15. 15. QUESTION:X.Ltd issued 20,000 Equity Shares of Rs.10/- payable as follows On Application Rs.2/ On Allotment Rs.3/ On First call Rs.2/ On Final call Rs.3/ The Company received application for 16,000 Equity shares. All the shares were duly alloted and money due was received.  Pass Journal Entries. 
  16. 16. IN THE BOOKS OF X. LTD JOURNAL ENTRIES Date Particulars L.F Dr.Amt. Cr.Amt. 1) By Bank A/c Dr. To Share Application A/c (16000 Shares X 2/- per share) (being application money received) 32000 - 32000 2) By Share Application A/c Dr. To Share Capital A/c (being application money transferred) 32000 - 32000 3) By Share Allotment A/c To Share Capital A/c (16000 Shares X 3/- per share) (being allotment money due) 48000 - 48000 4) By Bank A/c To Share Allotment A/c (being allotment money received) 48000 - 48000 Dr. Dr.
  17. 17. CONT:Date Particulars 5) By Share First Call A/c To Share Capital A/c (16000 Shares X 2/- per share) (being first call money due) 6) By Bank A/c To Share First Call A/c (being first call money received) 7) By Share Final Call A/c To Share Capital A/c (16000 Shares X 3/- per share) (being final call money due) 8) By Bank A/c To Share Final Call A/c (being final call money received) L.F Dr. Dr. Dr. Dr. Dr.Amt. Cr.Amt. 32000 - 32000 32000 - 32000 48000 - 48000 48000 - 48000
  18. 18. ??ANY QUERIES??

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