Tag Archives | Shares

Audit of Shares | Company | India | Auditing

In this article we will discuss about:- 1. Special Issues of Shares 2. Underwriting Commission or Brokerage on Issue of Shares 3. Forfeiture. Special Issues of Shares: (a) Redeemable preference shares: Ordinarily shares of a company, once issued, cannot be repaid or redeemed except in the event of liquidation. Sec. 80(5A) of the Companies Act […]

Types of Shares: Preference and Equity | Accounting

The shares which can be issued by a company, are of two types:- 1. Preference Shares 2. Equity Shares. Type # 1. Preference Shares: The Preference Shares are those which have some preferential rights over the other types of shares. A share to be preference share, must have two preferential rights: [Sec. 85(1)] (a) They […]

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 […]

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