Archive | Shares

Types of Shares: Preference and Equity | Accounting

The shares which can be issued by a company, are of two types:- 1. Preference Shares 2. Equity Shares. Type # 1. Preference Shares: The Preference Shares are those which have some preferential rights over the other types of shares. A share to be preference share, must have two preferential rights: [Sec. 85(1)] (a) They have a preferential right to [...]

By |2017-02-06T20:59:01+00:00February 6, 2017|Shares|Comments Off on Types of Shares: Preference and Equity | Accounting

Stock and Shares of a Company | Capital | Accounting

In this article we will discuss about stock and shares of a company. Also learn about the difference between them. Stock: When all the shares of a company have been fully paid up, they may be converted into stock if so authorised by the Articles, as per Sec. 94(1) (c). It is another kind of unit of capital of a [...]

By |2017-02-06T20:59:01+00:00February 6, 2017|Shares|Comments Off on Stock and Shares of a Company | Capital | Accounting

Accounting Entries for Issue of Shares at Premium | India | Company

In this article we will discuss about the accounting entries for the issue of shares at premium, explained with the help of an illustration.  A company likely to be very successful and enjoying a good reputation, asks intending shareholders to pay, on each share, a sum higher than the face value. In other words, when shares are issued at a [...]

By |2017-02-06T20:59:01+00:00February 6, 2017|Shares|Comments Off on Accounting Entries for Issue of Shares at Premium | India | Company
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