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
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. 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.
8. 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
10. PROCEDURE OF ISSUE OF SHARES
1
2
3
4
• Issue of prospectus
• Application received
• Allotment of share
• calls
11. Other related Terms
1) CALLS IN ARREARS.
2) CALLS IN ADVANCE.
3) FORFEITURE OF SHARES.
4) REISSUE OF SHARES.
11
12. 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
13.
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
14.
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
15.
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
16. 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.
17. 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.
18. 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