Company Accounts

Concept of Share Capital.

1. Company & its Capital Structure Presented By:- Vilas Deshmukh Abhishek Agrawal Sub:- Company Accounts

2. ???? Company ???? Definition - Sec 3(1)( i ) and (ii) :- “A Company formed and registered under this Act or an existing company. An ‘Existing Company’ means a company formed and registered under any of the former Companies Act.”

3. Characteristics

4. Conclusion:- A Company, thus, may be defined as an incorporated association , which is an artificial legal person , having a separate legal entity , with a perpetual succession , a common seal , a common capital comprised of transferable shares and carrying limited liability .

5. SHARES A share is the individual portion of the Company's capital owned by a share holder in the company. The Act defines a share as a ' share' in the share capital of the company and it includes stock. Each share has its own distinctive number. Shares are classified as movable property, transferable in the manner specified by the Articles.

6. Shares Classification :-

7. Share Capital Structure of Company

8. Share Capital Structure of Hindustan Unilever Limited

9. Procedure of Issue of Shares

10. 1) Calls in Arrears. 2) Calls in Advance. 3) Forfeiture of Shares. 4) Reissue of Shares. 11 Other related Terms

11. Issue of Shares When Share Application Money is Received:- Date Particulars L.F Dr.Amt . Cr.Amt . 1 By Bank A/c Dr. To Share Application A/c (being application money received) xxxxx - - xxxxx When Share Application Money is Transferred:- Date Particulars L.F Dr.Amt . Cr.Amt . 1 By Share Application A/c Dr. To Share Capital A/c (being application money transferred) xxxxx - - xxxxx

12. When Share Allotment money is Transferred:- Date Particulars L.F Dr.Amt . Cr.Amt . 1 By Share Allotment A/c Dr. To Share Capital A/c (being allotment money due) xxxxx - - xxxxx When Share Allotment Money is Received :- Date Particulars L.F Dr.Amt . Cr.Amt . 1 By Bank A/c Dr. To Share Allotment A/c (being allotment money received) xxxxx - - xxxxx

13. When Share First call money is Transferred:- Date Particulars L.F Dr.Amt . Cr.Amt . 1 By Share First call A/c Dr. To Share Capital A/c (being first call money due) xxxxx - - xxxxx When Share First call Money is Received :- Date Particulars L.F Dr.Amt . Cr.Amt . 1 By Bank A/c Dr. To Share First call A/c (being first call money received) xxxxx - - xxxxx

14. When Share Final call money is Transferred:- Date Particulars L.F Dr.Amt . Cr.Amt . 1 By Share Final call A/c Dr. To Share Capital A/c (being final call money due) xxxxx - - xxxxx When Share Final call Money is Received :- Date Particulars L.F Dr.Amt . Cr.Amt . 1 By Bank A/c Dr. To Share Final call A/c (being final call money received) xxxxx - - xxxxx

15. Question:- X.Ltd issued 20,000 Equity Shares of Rs.10/- payable as follows- On Application Rs.2/- On Allotment Rs.3/- On First call Rs.2/- On Final call Rs.3/- The Company received application for 16,000 Equity shares. All the shares were duly alloted and money due was received. Pass Journal Entries.

16. In the Books of X. Ltd Journal Entries Date Particulars L.F Dr.Amt . Cr.Amt . 1) 2) 3) 4) By Bank A/c Dr. To Share Application A/c (16000 Shares X 2/- per share) (being application money received) By Share Application A/c Dr. To Share Capital A/c (being application money transferred) By Share Allotment A/c Dr. To Share Capital A/c (16000 Shares X 3/- per share) (being allotment money due) By Bank A/c Dr. To Share Allotment A/c (being allotment money received) 32000 - 32000 - 48000 - 48000 - - 32000 - 32000 - 48000 - 48000

17. Date Particulars L.F Dr.Amt . Cr.Amt . 5) 6) 7) 8) By Share First Call A/c Dr. To Share Capital A/c (16000 Shares X 2/- per share) (being first call money due) By Bank A/c Dr. To Share First Call A/c (being first call money received) By Share Final Call A/c Dr. To Share Capital A/c (16000 Shares X 3/- per share) (being final call money due) By Bank A/c Dr. To Share Final Call A/c (being final call money received) 32000 - 32000 - 48000 - 48000 - - 32000 - 32000 - 48000 - 48000 Cont:-

18. ??Any Queries??