Tag Archives | Accounting

Shifting and Incidences of Tax

 The Meaning of Impact, Incidence and Shifting: When a tax is levied, its first impact will be felt by the person, who actually makes the tax payment. He may be an income-receiver, property owner or a buyer or seller of goods arid services. He may bear the tax himself. In some instances, he may be […]

Issue of Shares at a Premium (With Illustrations)

When shares are issued at a price higher than the face value (also called par value or nominal value), it is called an issue of shares at a premium. Excess of issue price over face value is the amount of premium; it is a capital profit for the company and the amount so earned has […]

Difference between Debenture and Shares

The upcoming discussion will update you about the difference between Debenture and Shares. (i) Creditor ship Security v. Ownership Security: Whereas a debenture is a creditor ship security, a share is an ownership security. It means that a debenture-holder is a creditor of the company, while a shareholder is a part-owner of the company. It […]

Sweat Equity Shares and Employee’s Stock Option

In this article we will discuss about the Sweat Equity Shares and Employee’s Stock Option in a Joint Stock Company. Sweat Equity Shares: The Companies (Amendment) Act, 1999 introduced through section 79-A a new type of equity shares called ‘Sweat Equity Shares’. The expression ‘sweat equity shares’ means equity shares issued at a discount or […]

Management of Joint Stock Companies

General: The internal management of companies is carried on according to the articles of association. The articles define the relationship between members and between members and the company. On this basis, members are bound to each other but neither the company nor the members are bound to outsiders. Articles may supplement the terms of a […]

How to Prepare a Statutory Report ?

The following article will guide you about how to Prepare a Statutory Report in Joint Stock Company. Preparation of Statutory Report: A new public company has to hold a statutory meeting soon after it receives its certificate for commencement of business and it has to send to its members a report called the statutory report. […]

Underwriting of a Company

Meaning of Underwriting: Underwriting in the context of a company means undertaking a responsibility or giving a guarantee that the shares or debentures offered to the public will be subscribed for. There are firms which undertake this sort of work and are very useful to companies which want to raise funds by the issue of […]

Top 8 Problems on Redemption on Preference Shares

The following points highlight the top eight problems on redemption on preference shares with their relevant solutions. Illustration 1: On 31st March, 2012 the balance sheet of Utopia Limited stood as follows: Illustration 2:  Following is the Balance Sheet of R. Ltd. as on March 31, 2012: Illustration 3: On 1st April, 2012 the following […]

Meeting of Shareholders

The following points highlight the five main criteria required during meeting of shareholders. The criteria are: 1. Quorum 2. Voting 3. Resolutions 4. Copies to be Filed with the Registrar 5. Minutes Books. Meeting of Shareholders: Criteria # 1. Quorum: The quorum for the general meetings of the company is five persons personally present for […]

General Shareholders Meeting of a Company

The following points highlight the top three kinds of general shareholders meeting of a company. The kinds are: 1. Statutory Meeting 2. Annual General Meeting 3. Extraordinary General Meeting. Shareholders Meeting: Kind # 1. Statutory Meeting: Every public company limited by shares, and limited by guarantee and having a share capital, must hold a general […]

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