Chapter 1: Accounting for Share Capital

How does a company raise capital?

Details

Company form came into existence after industrial revolution due to limitations of proprietorship and partnership firms in carrying out business on a large scale.
In the modern age, capital is required for business. So, company collects its own capital from several persons. Joint stock company is an association of persons and has an objective of carrying out some business for profit.
Company has a separate legal existence by law. Incorporation, management, and winding up of company are governed by the provisions of Companies Act.
In India, a separate act for companies was first made in 1956. It is known as Companies Act, 1956. Recently the Indian Government has incorporated New Companies Act, 2013 after necessary amendments in the previous Act.


Curriculum

  • Pg 58, Q. 6, Q. 7, Q.8
    37 m 47 s
  • Pg 59, Q. 9, Q.10, Q.11
    30 m 27 s
  • Forfeiture and Reissue of Shares Concept
    34 m 31 s
  • Pg. 60 - 61; Q. 14 and Q. 15
    25 m 32 s
  • Pg 61, Q. 16, Q. 17
    29 m 50 s
  • Pg. 62, Q.19, Q.20, Q. 21
    34 m 59 s
  • Accounting For Share Capital Quiz
    20 questions
  • What is share and share capital?
    1 m
  • What is securities premium?
    1 m
  • What is meant by share forfeiture ?
    1 m
  • In which circumstances do companies issue shares for consideration other than cash?
    1 m
  • Under which circumstances do companies issue shares for consideration other than cash?
    1 m
  • What is under-subscription and over-subscription of shares?
    1 m
  • What is pro-rata allotment of shares?
    1 m
  • State any two uses of amount of securities premium reserve.
    1 m
  • Important Questions
    400 KB
  • 3.8 hours of content
  • 8 texts
  • 1 quiz
  • 1 PDF
  • 105+ students
  • 24x7 support