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Bills of Exchange
Case 1: When the bill is retained till maturity
Case 2: When the bill is discounted
Case 3: When the bill is endorsed
Case 4: When the bill is sent to bank for
collection
• Dishonour cases- Dishonour of a bill means when the drawee doesn’t honour his commitment i.e. he doesn’t
pay the amount on due date.
• Holder of the bill may present the bill through Notary public and get the dishonor of the bill noted.
• Noting is made of the following
Case1:When the bill is retained till maturity and is dishonoured
Case2:When the bill is discounted with bank and is dishonoured
Case3:When the bill is endorsed and is dishonoured
Case4:When the bill is sent to bank for collection and is dishonoured
Question for practice
Q1. On 1st Jan, 2019, A drew a bill on B for Rs. 5,000 payable after 3 months. B accepted the bill and returned it to
A. After 10 days, A endorsed the bill to his creditor C. On due date, the bill was dishonoured and C paid noting
charges. Record the transactions in the journals of A, B and C
In the books of A In the books of B In the books of C
What is a share
Share is a unit in which capital of the company is divided. Each share has a value and the
holder of these shares are called shareholders
Why company issue shares?
Why company issue shares?
Mr. Anuj started business of manufacturing
t-shirts with cash Rs. 1,00,000 . At the
moment, he is fufilling order of 2000 t-
shirts. He got a order of 10,000 shares for
which he needs money of Rs. 4,00,000. The
various options available to him are
Bank loan
Unsecured loan
Borrow from friends
Issue of shares
Sales
1st Qtr
2nd
Qtr
3rd Qtr
Share certificate
A company may issue shares :
In lump sum along with the application
In instalments at different stages
Issue of shares at par
Star Ltd. invited applications for 10,000 shares of Rs. 10 each. The amount is payable as Rs.3 on
application, Rs. 4 on allotment and balance Rs. 3 on first and final call. The issue was fully subscribed.
Pass journal entry
Issue of shares at par (Call in arrears)
Star Ltd. invited applications for 10,000 shares of Rs. 10 each. The amount is payable as Rs.3 on application, Rs. 4 on
allotment and balance Rs. 3 on first and final call. The issue was fully subscribed. Allotment was made and money was
duly received except first and final call on 100 shares. Pass journal entry
Issue of shares at par (Call in arrears and call in advance)
Star Ltd. invited applications for 200,000 shares of Rs. 10 each. The amount is payable as Rs.3 on application, Rs. 2 on
allotment and Rs. 3 on first call and Rs. 2 on second and final call. On first call , one shareholder holding 6,000 equity
shares paid second and final call along with first call while shareholders holding 10,000 shares didn’t pay the first call
on shares.
Types of Share Capital
Authorised capital- It is the amount of share capital which a company is authorised to issue by it MOA. The
company cannot raise more than the amount of capital as specified in MOA. It is called nominal or registered
capital
Issued capital-it is that part of authorised capital which is offered to the public for subscription.
Subscribed capital-It is that part of the issued capital which has been actually subscribed by the public.
Called up capital- It is that part of subscribed capital which has been called up on the shares.
Uncalled capital is that portion of the subscribed capital which has not yet been called up.
Paid up capital- It is that portion of called up capital which has been actually received from the shareholders.
Paid up capital= called up-call in arrears
Bills of Exchange.pptx
Bills of Exchange.pptx
Bills of Exchange.pptx
Bills of Exchange.pptx
Bills of Exchange.pptx
Bills of Exchange.pptx
Bills of Exchange.pptx

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Bills of Exchange.pptx

  • 2.
  • 3. Case 1: When the bill is retained till maturity
  • 4.
  • 5. Case 2: When the bill is discounted
  • 6.
  • 7.
  • 8. Case 3: When the bill is endorsed
  • 9.
  • 10.
  • 11.
  • 12. Case 4: When the bill is sent to bank for collection
  • 13.
  • 14.
  • 15. • Dishonour cases- Dishonour of a bill means when the drawee doesn’t honour his commitment i.e. he doesn’t pay the amount on due date. • Holder of the bill may present the bill through Notary public and get the dishonor of the bill noted. • Noting is made of the following
  • 16. Case1:When the bill is retained till maturity and is dishonoured
  • 17.
  • 18.
  • 19. Case2:When the bill is discounted with bank and is dishonoured
  • 20.
  • 21. Case3:When the bill is endorsed and is dishonoured
  • 22.
  • 23. Case4:When the bill is sent to bank for collection and is dishonoured
  • 24.
  • 25.
  • 26. Question for practice Q1. On 1st Jan, 2019, A drew a bill on B for Rs. 5,000 payable after 3 months. B accepted the bill and returned it to A. After 10 days, A endorsed the bill to his creditor C. On due date, the bill was dishonoured and C paid noting charges. Record the transactions in the journals of A, B and C In the books of A In the books of B In the books of C
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32. What is a share Share is a unit in which capital of the company is divided. Each share has a value and the holder of these shares are called shareholders Why company issue shares?
  • 33.
  • 34.
  • 35. Why company issue shares? Mr. Anuj started business of manufacturing t-shirts with cash Rs. 1,00,000 . At the moment, he is fufilling order of 2000 t- shirts. He got a order of 10,000 shares for which he needs money of Rs. 4,00,000. The various options available to him are Bank loan Unsecured loan Borrow from friends Issue of shares Sales 1st Qtr 2nd Qtr 3rd Qtr
  • 36.
  • 37.
  • 38.
  • 39.
  • 41.
  • 42. A company may issue shares : In lump sum along with the application In instalments at different stages
  • 43.
  • 44. Issue of shares at par Star Ltd. invited applications for 10,000 shares of Rs. 10 each. The amount is payable as Rs.3 on application, Rs. 4 on allotment and balance Rs. 3 on first and final call. The issue was fully subscribed. Pass journal entry
  • 45.
  • 46. Issue of shares at par (Call in arrears) Star Ltd. invited applications for 10,000 shares of Rs. 10 each. The amount is payable as Rs.3 on application, Rs. 4 on allotment and balance Rs. 3 on first and final call. The issue was fully subscribed. Allotment was made and money was duly received except first and final call on 100 shares. Pass journal entry
  • 47.
  • 48.
  • 49.
  • 50. Issue of shares at par (Call in arrears and call in advance) Star Ltd. invited applications for 200,000 shares of Rs. 10 each. The amount is payable as Rs.3 on application, Rs. 2 on allotment and Rs. 3 on first call and Rs. 2 on second and final call. On first call , one shareholder holding 6,000 equity shares paid second and final call along with first call while shareholders holding 10,000 shares didn’t pay the first call on shares.
  • 51.
  • 52.
  • 53.
  • 54. Types of Share Capital Authorised capital- It is the amount of share capital which a company is authorised to issue by it MOA. The company cannot raise more than the amount of capital as specified in MOA. It is called nominal or registered capital Issued capital-it is that part of authorised capital which is offered to the public for subscription. Subscribed capital-It is that part of the issued capital which has been actually subscribed by the public. Called up capital- It is that part of subscribed capital which has been called up on the shares. Uncalled capital is that portion of the subscribed capital which has not yet been called up. Paid up capital- It is that portion of called up capital which has been actually received from the shareholders. Paid up capital= called up-call in arrears

Editor's Notes

  1. Noting charges is credited in vikas’s book as when he would get that amount from nishchay it will be his income
  2. Noting charges is credited in vikas’s book as when he would get that amount from nishchay it will be his income SAME REASON.