- published: 18 Oct 2013
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Share capital (or capital stock in US English) refers to the portion of a company's equity that has been obtained by trading stock to a shareholder for cash.
In its strict sense, as used in accounting, share capital comprises the nominal values of all shares issued (that is, the sum of their par values, as printed on the share certificates). If the allocation price of shares is greater than their par value, e.g. as in a rights issue, the shares are said to be sold at a premium (called share premium, additional paid-in capital or paid-in capital in excess of par). Commonly, the share capital is the total of the aforementioned nominal share capital and the premium share capital.
Sometimes shares are allocated in exchange for non-cash, most commonly when company A acquires company B for shares. Here the share capital is increased to the par value of the new shares, and the merger reserve is increased to the balance of the price of company B.
Besides its meaning in accounting, described above, "share capital" may also be used to describe the number and types of shares that compose a company's share structure. For an example of the different meanings: a company might have an "outstanding share capital" of 500,000 shares (the "structure" usage); it has received for them a total of 2 million dollars, which in the balance sheet is the "share capital" (the accounting usage).
Capital may refer to:
Introduction, The Introduction, Intro, or The Intro may refer to:
Hindi (Hindi: हिन्दी hindī), sometimes spelled हिंदी, also called Modern Standard Hindi (Hindi: मानक हिन्दी mānak hindī), is a standardised and Sanskritised register of the Hindustani language. Hindi is the official language of the Union of India.
In the 2001 Indian census, 258 million people in India reported Hindi to be their native language. However, this number includes tens of millions of people who are native speakers of related languages but who consider their speech to be a dialect of Hindi.
Hindi is the fourth most natively spoken language in the world after Mandarin, Spanish and English.
Article 343 (1) of the Indian constitution states:
Article 351 of the Indian constitution states
It was envisioned that Hindi would become the sole working language of the Union Government by 1965 (per directives in Article 344 (2) and Article 351), with state governments being free to function in the language of their own choice. However, widespread resistance to the imposition of Hindi on non-native speakers, especially in South India (such as the those in Tamil Nadu), Maharashtra, Andhra Pradesh and West Bengal, led to the passage of the Official Languages Act of 1963, which provided for the continued use of English indefinitely for all official purposes, although the constitutional directive for the Union Government to encourage the spread of Hindi was retained and has strongly influenced its policies.
A company is an association or collection of individuals, whether natural persons, legal persons, or a mixture of both. Company members share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals. Companies take various forms such as:
A company or association of persons can be created at law as legal person so that the company in itself can accept Limited liability for civil responsibility and taxation incurred as members perform (or fail) to discharge their duty within the publicly declared "birth certificate" or published policy.
Because companies are legal persons, they also may associate and register themselves as companies – often known as a corporate group. When the company closes it may need a "death certificate" to avoid further legal obligations.
Company Accounts - Share Capital - Introduction Accounting for Share Capital, Issue of Share Capital
This video provides learning on the complete set of accounting entries recorded at the time of issue of share capital through reissue of forfeited shares. Accounting entries contain transaction of receipt of share application, share allotment, shares forfeited, shares reissued. Cases of shares issued at par, shares issued at premium and shares issued at discount are also considered.
http://www.evidyarthi.in/ Learn Accounts for free.
Meaning of a Company: - A company is an artificial person created by law, having separate entity with a perpetual succession and common seal. Characteristics (Features) of a Company 1) Incorporation 2) Separate Legal Entity 3) Perpetual Existence 4) Limited Liability 5) Transferability of Shares 6) Management and Ownership are separate 7) Common Seal Benefits of StayLearning Video Lectures • LIVE recorded video lectures. (Full Syllabus Covered) • Step by Step Solution • Conceptual Clarity in depth • Learn at your Own Speed & Time - Play | Pause | Re-watch | Skip • Complete classroom recordings of our actual classroom program at Delhi. • We are industry expert, most trusted and tested in the field of coaching. • 45,000 + Hours of Experience in Training Students We also provide Complet...
Subscribe to the Channel and stay updated with the latest Educational Videos. The time has gone where you need to spend money on tuition. Learn here on the best Educational channel for CBSE and ICSE boards. Share capital is the amount raised by a company from its owners. Normally, the company's share capital can be divided into small values, called Face value. Share capital can be of various types, including Equity and Preference share capital. While equity share capital is not entitled to any fixed return, preference shareholders are normally entitled to a fixed return on the amount invested in the company, and have preference over equity shareholders in terms of rrepayment of money , if the company is liquidated.
Pro rata Allotment: Pro rata allotment means allotment in proportion of shares applied for. Forfeiture of Shares: Forfeiture of shares means cancellation of allotted shares. Re-issue of Shares: Reissue of shares means sale of forfeited shares. Buy Now all Video Lectures - http://www.vijayadarsh.com/Accountancy-XII.html Buy Now Class Handwritten Notes - http://www.vijayadarsh.com/Accountancy-XII.html Join us on Facebook: https://www.facebook.com/VijayAdarshIndia Join us on Google+: https://plus.google.com/u/0/+VIJAYADARSH Website: http://www.vijayadarsh.com E-mail: contact@vijayadarsh.com Contact: +91 9268373738 (Buy Now all Video Lectures) About Video Lectures: Video Lectures for Accountancy for Class 12th by Vijay Adarsh evolved as utility services for our own students. The...
http://www.evidyarthi.in/ Learn Accounts for free.
Redemption of Preference Shares Redemption of preference shares means playing back or redemption to the preference shareholder. The following are the important provisions regarding the redemption of preference shares which are given under Section 80 of the Companies Act: (1) Company must be authorized by its articles of association. (2) No such shares shall be redeemed unless they are fully paid up. The partly paid up shares cannot be redeemed. If they are partly paid in that case a final call be made to convert them from partly paid to fully paid only then redemption can be carried out. (3) Such shares can be redeemed (a) Out of the profit of the company which would otherwise be available for the dividend; or (b) Out of the proceeds of a fresh issue of shares made for the purpose of redem...
Accounting for Shares by CA Ravi Taori. Helpful for Students of CA-CPT, CS-Foundation, CS Executive
Company Accounts - Share Capital - Introduction Accounting for Share Capital, Issue of Share Capital
This video provides learning on the complete set of accounting entries recorded at the time of issue of share capital through reissue of forfeited shares. Accounting entries contain transaction of receipt of share application, share allotment, shares forfeited, shares reissued. Cases of shares issued at par, shares issued at premium and shares issued at discount are also considered.
http://www.evidyarthi.in/ Learn Accounts for free.
Meaning of a Company: - A company is an artificial person created by law, having separate entity with a perpetual succession and common seal. Characteristics (Features) of a Company 1) Incorporation 2) Separate Legal Entity 3) Perpetual Existence 4) Limited Liability 5) Transferability of Shares 6) Management and Ownership are separate 7) Common Seal Benefits of StayLearning Video Lectures • LIVE recorded video lectures. (Full Syllabus Covered) • Step by Step Solution • Conceptual Clarity in depth • Learn at your Own Speed & Time - Play | Pause | Re-watch | Skip • Complete classroom recordings of our actual classroom program at Delhi. • We are industry expert, most trusted and tested in the field of coaching. • 45,000 + Hours of Experience in Training Students We also provide Complet...
Subscribe to the Channel and stay updated with the latest Educational Videos. The time has gone where you need to spend money on tuition. Learn here on the best Educational channel for CBSE and ICSE boards. Share capital is the amount raised by a company from its owners. Normally, the company's share capital can be divided into small values, called Face value. Share capital can be of various types, including Equity and Preference share capital. While equity share capital is not entitled to any fixed return, preference shareholders are normally entitled to a fixed return on the amount invested in the company, and have preference over equity shareholders in terms of rrepayment of money , if the company is liquidated.
Pro rata Allotment: Pro rata allotment means allotment in proportion of shares applied for. Forfeiture of Shares: Forfeiture of shares means cancellation of allotted shares. Re-issue of Shares: Reissue of shares means sale of forfeited shares. Buy Now all Video Lectures - http://www.vijayadarsh.com/Accountancy-XII.html Buy Now Class Handwritten Notes - http://www.vijayadarsh.com/Accountancy-XII.html Join us on Facebook: https://www.facebook.com/VijayAdarshIndia Join us on Google+: https://plus.google.com/u/0/+VIJAYADARSH Website: http://www.vijayadarsh.com E-mail: contact@vijayadarsh.com Contact: +91 9268373738 (Buy Now all Video Lectures) About Video Lectures: Video Lectures for Accountancy for Class 12th by Vijay Adarsh evolved as utility services for our own students. The...
http://www.evidyarthi.in/ Learn Accounts for free.
Redemption of Preference Shares Redemption of preference shares means playing back or redemption to the preference shareholder. The following are the important provisions regarding the redemption of preference shares which are given under Section 80 of the Companies Act: (1) Company must be authorized by its articles of association. (2) No such shares shall be redeemed unless they are fully paid up. The partly paid up shares cannot be redeemed. If they are partly paid in that case a final call be made to convert them from partly paid to fully paid only then redemption can be carried out. (3) Such shares can be redeemed (a) Out of the profit of the company which would otherwise be available for the dividend; or (b) Out of the proceeds of a fresh issue of shares made for the purpose of redem...
Accounting for Shares by CA Ravi Taori. Helpful for Students of CA-CPT, CS-Foundation, CS Executive
Company Accounts - Share Capital - Introduction Accounting for Share Capital, Issue of Share Capital