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Accounting Entries for Reduction of Share Capital | Company

Accounting entries to be passed in respect of reduction of share capital are discussed in this article.  1. Where the liability on any share in respect of uncalled capital is being reduced, no entry is usually required. For instance, a share of Rs 10 on which Rs 6 has been paid up, now being reduced to a fully paid share [...]

By |2017-02-06T20:58:59+00:00February 6, 2017|Share Capital|Comments Off on Accounting Entries for Reduction of Share Capital | Company

Alteration of Share Capital and Internal Reconstruction | Accounting

Here is a compilation of top four accounting problems on alteration of share capital and internal reconstruction with its relevant solutions. Illustration 1:   The summarised Balance Sheet of Sunrise Ltd. as on 31st December, 2006 was as under: On 31.12.2006 the following scheme of capital reduction was taken: (a) The equity shares were reduced to 25 paise each. (b) [...]

By |2017-02-06T20:58:58+00:00February 6, 2017|Share Capital|Comments Off on Alteration of Share Capital and Internal Reconstruction | Accounting
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