Concept of Share Capital.

1. Sub:- Company Accounts
Presented By:-
Vilas Deshmukh
Abhishek Agrawal

2.  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
Companies Act.”
under
any
of
the
former

3. Incorporated
Association
Artificial
Legal Person
Transferability
of Shares
COMPANY
Not a
Citizen
Limited
Liability
Common
Seal
Perpetual
Existence

4. 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
shares and carrying limited liability.
transferable

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 :-
Shares
Equity
Preference

8. Share Capital Structure of Company
Called up
capital
Authorized/
Registered
Capital
Issued
Capital
Unissued
Capital
Subscribed
Capital
Uncalled
Capital
Unsubscribed
Capital
Reserve
Capital
Paid-Up
Capital
UnpaidCapital

9. SHARE CAPITAL STRUCTURE OF
HINDUSTAN UNILEVER LIMITED

10. PROCEDURE OF ISSUE OF SHARES
1
2
3
4
• Issue of prospectus
• Application received
• Allotment of share
• calls

11. Other related Terms
1) CALLS IN ARREARS.
2) CALLS IN ADVANCE.
3) FORFEITURE OF SHARES.
4) REISSUE OF SHARES.
11

12. ISSUE OF SHARES

When Share Application Money is Received:Date
1

Particulars
L.F Dr.Amt.
By Bank A/c
Dr.
To Share Application A/c
(being application money received)
xxxxx
-
Cr.Amt.
xxxxx
When Share Application Money is Transferred:Date
1
Particulars
By Share Application A/c
To Share Capital A/c
L.F Dr.Amt.
Dr.
(being application money transferred)
xxxxx
-
Cr.Amt.
xxxxx

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

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

15. 
When Share Final call money is Transferred:Date
1

Particulars
By Share Final call A/c
To Share Capital A/c
(being final call money due)
L.F Dr.Amt.
Dr.
xxxxx
-
Cr.Amt.
xxxxx
When Share Final call Money is Received:Date
1
Particulars
By Bank A/c
Dr.
To Share Final call A/c
(being final call money received)
L.F Dr.Amt.
xxxxx
-
Cr.Amt.
xxxxx

16. 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.


17. IN THE BOOKS OF X. LTD
JOURNAL ENTRIES
Date
Particulars
L.F
Dr.Amt.
Cr.Amt.
1)
By Bank A/c
Dr.
To Share Application A/c
(16000 Shares X 2/- per share)
(being application money received)
32000
-
32000
2)
By Share Application A/c
Dr.
To Share Capital A/c
(being application money transferred)
32000
-
32000
3)
By Share Allotment A/c
To Share Capital A/c
(16000 Shares X 3/- per share)
(being allotment money due)
48000
-
48000
4)
By Bank A/c
To Share Allotment A/c
(being allotment money received)
48000
-
48000
Dr.
Dr.

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

19. ??ANY QUERIES??