Tag Archives | Share Capital

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 […]

Top 16 Problems on Investment Accounts (With Solutions)

Are you looking for problems and solutions on investment accounts? You are at the right place! In this article I have compiled top sixteen problems on investment account with its relevant solutions. Contents: Preparation of Bonds Account Preparation of Investment Account Valuing Holdings at Cost (Applying FIFO Method) Preparation of Ledger Account of the Investment […]

Alteration of Share Capital for Reconstruction

In this article we will discuss about the Alteration of Share Capital for Reconstruction. A company can alter its share capital, if it is empowered by its articles to do so. Alteration, as distinct from reduction, may involve the following: (1) Conversion of shares into stock; (2) Increase in capital; (3) Decrease (without reduction in […]

Schemes of Reconstruction of Share Capital

The need for reconstruction arises when a company has accumulated losses or when a company finds itself overcapitalized which means either that the value placed on assets is too much as compared to their earning capacity or that the profits as a whole are insufficient to pay a proper dividend. In the previous section, the […]

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