Tag Archives | India

Private and Public Company: Difference | India | Accounting

The upcoming discussion will update you about the differences between private and public company. Difference # Private Company: 1. The minimum number of members required to form a company is two. 2. The maximum number of members must not exceed fifty. 3. It must have two directors. 4. Shares are not freely transferable. 5. It […]

Difference between Company and a Partnership Firm | India | Accounting

The upcoming discussion will update about the difference between company and a partnership firm. Difference # Company: 1. A Company is regulated by the Companies Act, 1956. 2. A Company must be registered. 3. A Company has a separate legal existence distinct from its shareholders. 4. The minimum number of persons required to form a […]

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 […]

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 […]

Accounting Entries for Calls-In-Arrears and Calls-In Advance | Shares

In this article we will discuss about the accounting entries for call-in-arrears and calls-in-advance, explained with the help of an illustration. Calls-In-Arrears: If any amount, called in respect of a share, is not paid before or on the date fixed for payment thereof, such amount which is not paid, is called “CALLS-IN-ARREARS”. Amount may be […]

Journal Entries for Issue of Shares | Company | Accounting

In this article we will discuss about the journal entries required for the issue of shares, explained with the help of suitable illustrations. Many times, it is seen that shares have been allotted to persons or firms, from whom assets have been purchased. Such issues of shares have been clearly shown in Balance Sheet and […]

Debenture Trustees (Accounting Treatment) | India | Company

In this article we will discuss about the accounting entries relating to debenture trustees, explained with the help of an illustration. Generally, to look after the interest of the debenture-holders, certain persons are elected as trustees by the debenture-holders. Alternatively, the names of trustees may be mentioned in the prospectus inviting subscription for debentures of […]

Accounting Treatment for Rights Issue of Shares | India | Company

In this article we will discuss about the accounting treatment for rights issue of shares, explained with the help of suitable illustrations. Sec. 81 of the Companies Act, 1956 provides that where a Public Company decides to increase its subscribed capital by issue of additional shares, at any time after the expiry of two years […]

Difference between Shares and Debentures | Company | Accounting

The upcoming discussion will update you about the difference between shares and debentures. Difference # Shares: 1. Shares denote the owned capital of a Company. 2. A shareholder is a part proprietor of a Company. 3. A shareholder gets dividend, which shall be payable out of undistributed profits. 4. A shareholder cannot receive any divid­end […]

Accounting Treatment for Reissue of Forfeited Shares | Accounting

In this article we will discuss about the accounting treatment for reissue of forfeited shares, explained with the help of suitable illustrations. Forfeited shares may either be cancelled or reissued. Such shares once forfeited can be reissued to any person within reasonable time and at reasonable price. They can be reissued at par, at premium […]

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