Archive about 'Limited Companies'

What Is The Meaning Of Treasury Stock And How Is It Represented/Classified In The Balance Sheet?

Can you tell me (a) what is the meaning of treasury stock and (b) how is it classified in the Balance Sheet?

Answer to (a):

When a company buys its own stock in the open market, the stock re-purchased is called Treasury Stock.

Where [...]

Listing Of Articles Under Heading Limited Companies

Append below a summary of articles on Limited Companies
 

ISSUANCE OF SHARES,ETC

Terms Used in Relation To Share Capital

Issuance of shares and debentures

Revision Notes On Limited companies On Issue Of Shares On Installments & Method Of Raising Share Capital

Oversubscription of Share Issued

Subscription Of Shares By Installment-Calls In Arrears

 

PROFIT AND LOSS APPROPRIATION ACCOUNT

What Is Profit & Loss Appropriation [...]

Answer To Accounting Test Question No. Ltd 2 On Limited Companies-Profit & Loss Appropriation Account

The question on this limited company asked for a simple preparation of the Profit & Loss Appropriations where the dividends are considered.

Answer Paper to Accounting Test Question No.Ltd 2 on Limited Companies
Jim Ltd
Profit & Loss Appropriation for the year ended 31 December 2007

$

$

Net Profit

900,000

Add: Retained profit [...]

Accounting Test Question No Ltd 2 On Limited Companies

Below is a straight forward question on Profit & Loss Appropriation Account.

Question:
Jim Ltd made a net profit of $900,000 for the financial year ended 31 December 2007. Retained brought forward is $50,000.
(a)    The company issued out 100,000 10% preference shares of $1 each and 200,000 ordinary shares of $2 each
(b)     Interim dividend paid to [...]

Answer To Accounting Test Question No. Ltd 1 On Limited Companies-Profit & Loss Appropriation Account

The question on this limited company asked for a simple preparation of the Profit & Loss Appropriations where the dividends are considered.

Answer Paper to Accounting Test Question No.Ltd 1 on Limited Companies
Jim Ltd
Profit & Loss Appropriation for the year ended 31 December Year 8

$

$

Net Profit

41,500

Add: Retained profit [...]

Accounting Test Question No Ltd 1 On Limited Companies-Profit & Loss Appropriation Account

Below question is testing the reader on the preparation of the Profit & Loss Appropriation Account.
{Hint: So from the masses of data, just pick up the net profit for the year ended and worked on the dividends whether paid or payable and for the different types of dividend re: preferential & ordinary share.]

Question:
Jim [...]

Limited Companies:Subscription of Shares By Installment: Call In Arrears

This article deals with a limited company which has issued shares by installment and whereby the shares are called up and the shares applicants are informed to settle their installments on shares but the company has not being able to collect payment on the due date.

The accounting entries are shown and an illustration [...]

Limited Companies:Over-subscription Of Shares Issued

This article deals with a limited company which has a scenario of over-subscription of shares issued. The accounting entries are shown and an illustration being given for clearer understanding.

When a limited company issue shares where the more shares are applied for than those available for issue, it results in the [...]

Revision Notes On Limited Companies: Issue Shares On Installment & Method Of Raising Share Capital

 

ISSUE SHARE ON INSTALLMENT

Usually issues share in full amount or installment. When shares are issued as installment, an APPLICATION and ALLOTMENT Account is created
· Where shares are issued and money is received from applicants at PAR VALUE
(a)  Debit: Bank Account
     Credit: Application & Allotment A/c
 (b) Debit: Application & Allotment a/c
     Credit: Shares Capital A/c
 
· [...]

Profit And Loss Appropriation Account

The Profit And Loss Appropriation Account

 For A Sole Trader : 

The net profit is the entitlement of the owner and it is accordingly added to capital. Any drawings are deducted from capital 

 However for a Limited Company, a typical Profit And Loss Appropriation Account will look like below:        
     Profit And Loss Appropriation Account for XYZ Limited [...]