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Archive about 'Limited Companies'

Explain what are Calls in Arrear and In Advance and How are they represented in the Balance sheet

Tweet See earlier article on the various stages of shares issued payable by installments Below are the double entry system for the various stages of shares issued payable by installments:- Various stages or types of transactions Debit Credit Application money received Bank account Application & Allotment account Application money refunded Application & Allotment account […]

Explain what are Forfeited Shares, what are the ways to deal with forfeited shares and the bookkeeping or accounting double entry system when dealing with forfeited shares

Tweet Forfeited shares When a shareholder is unable or unwilling to pay the calls made by the company on his or her shares, the directors have the power to forfeit the shares. Once the shares have been forfeited the person concerned is no longer a shareholder in respect of those shares forfeited. How to deal […]

What are the accounting or bookkeeping double entries for the transactions in the various stages of shares issued payable by instalments

Explain the various stages of Shares Issued payable BY INSTALLMENTS

Tweet The various stages of shares issued payable by instalments are as follows: Invitation by the company to the public to buy shares Applications together with the application moneys are received Allotment of shares to the applicants. Refund of application monies to unsuccessful applicants. Letters of allotments sent to successful applicants Allotment moneys are received […]

Explain what is bonus share or scrip issue. Give a simple worked example to illustrate Bonus share issue.

Tweet Bonus shares are:- Shares issued to existing shareholders by means of capitalizing reserves ie using reserves to increase the number of issued shares. In No money or cash passes at all but the shareholders do receive share certificates Often the arrangement is known as paper or scrip issue Provided all legal requirements are complied […]

Accounting Quiz or Test Your Accounting Knowledge On Limited Companies

Tweet Refresh or test your accounting knowledge on Limited Companies: QUESTIONS:1.0 What is the meaning of “limited liability”? 2.0 List four of the statutory books which companies must maintain? 3.0 What is the difference between issued capital and called-up capital? 4.0 What are the differences between ordinary shares and preference shares? 5.0 What are the […]

In Accounting, What Do We Mean By Retained Profits

Tweet The profits of a company after tax are distributed or appropriated as decided by its directors. Not all the profits after tax will be distributed. The profits that are not distributed or appropriated are known as “retained profits”.

Explain What Is Meant By An Annual General Meeting, Annual Report And Accounts and Annual Return

Tweet Earlier article describe the difference between the Articles Of Association and Memorandum Of Articles. Below briefly describe in some commonly used-terms in both private and public limited company namely:-company’s annual general meeting, annual report and accounts and annual return: Annual General Meeting ( abbreviation AGM) Held only by limited company ( not in sole […]

What is Distributable Profits Of A Company?

Tweet What do we mean by Distributable Profits of a Company? Suggested Answer: Distributable profits are the profits of a LIMITED company that are available for distribution to the shareholders as dividends. These are revenue reserves including the profit and loss account and the general reserves.

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

Tweet 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 there is a difference between the number of shares issued […]