Tag Archives | Shares

Buy-back of Shares (With Illustration) | Accounting

The below mentioned article provides a study note on the Buy-back of Shares:- 1. Conditions for Buy-back of Shares 2. Restrictions on Buy-back of Shares 3. Contents of Notice of Meeting 4. Time-limit 5. Sources 6. Picking Shares 7. Declaration of Solvency 8. Method of Fixation of Price 9. Deposit in an Escrow Account 10. […]

Forfeiture and Reissue of Shares

In this article we will discuss about the Forfeiture and Reissue of Shares:- 1. Introduction to Forfeiture and Reissue of Shares 2. Journal Entries on Forfeiture (or Surrender) and Reissue of Shares 3. Solved Illustrations. Introduction to Forfeiture and Reissue of Shares: If a shareholder fails to pay allotment money or a call or a […]

Journal Entries on Issue of Shares

In this article we will discuss about the Journal Entries on Issue of Shares for Consideration Other than Cash. A company may issue shares for consideration other than cash. It may, for example, purchase some fixed assets for which it may make payment in the form of shares. Or it may take over a running […]

Issue of Shares by a Company

The following points highlight the five main steps for the issue of shares by a company. The steps are: 1. Issue of Prospectus 2. Use of Application Moneys 3. Pro Rata Allotment 4. Calls in Advance 5. Calls in Arrear 6. Balance Sheet. Step # 1. Issue of Prospectus: To collect capital from the public, […]

Top 6 Problems on Inter-Company Holdings of Shares

The following points highlight the top six problems on inter-company holdings of shares with their relevant solutions. Illustration 1: The abridged balance sheet of Vidur Ltd. as at 31st March, 2012 was as follows: Illustration 2: The following are the summarized Balance Sheets of X Ltd. and Y Ltd. as on 31st March, 2012: Illustration […]

Valuation of Shares: Need and Methods (With Illustrations)

In this article we will discuss about the Need and Methods required for Valuation of Shares. Need for Valuation of Shares: In most cases, shares are quoted on the stock exchange; and for ordinary transactions in shares or debentures or Government securities, the price prevailing on the stock exchange may be taken as the proper […]

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