Archive about 'Limited Companies'
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 [...]
Issues of Shares and Debentures
When a company issues shares or debentures, one of the following three (3) scenarios might occur:
Issuance AT PAR
Issuance AT A PREMIUM
Issuance AT A DISCOUNT
Scenarios
Meaning
Issuance AT PAR
A share or debenture of (say) $1 each nominal value would be issued for $1 each.
Issuance AT A PREMIUM
At a premium a price above the share’s nominal value. For example, [...]
Terms Used In Relation To Share Capital
Terms used in Relation To Share Capital
Authorised Share Capital
Also call Nominal Capital
This is the total amount of share capital stated in the Memorandum of Association that can be offered for subscription
Issued Capital
This is the part of the authorized capital that has been offered to the public for subscription and has been ACTUALLY allotted to the [...]
Long Term Sources Of Funds – Types of Share Capital (Part 2 of 3)
Short- term finance is generally borrowings that repayable within ONE year;
Medium- term finance are those repayable within 2 to 5 years and
Long-term finance repayable after more than 5 years
This 2 nd part article seeks to look at Long term sources of fund which include the following:
Share capital and
Fixed Income Securities
SHARE CAPITAL:
A share is a security [...]
March 13, 2010
- In Accounting, Explain What Is Recoverable Amount
- In Accounting, What Do We Mean By Retained Profits
February 28, 2010
- What are the Accounting Treatment and give examples of Non-Adjusting Events After The Balance Sheet Date
- Please Explain What Are The Underlying Accounting Principles That At Least Need To Be Follow When Presenting Financial Statements under FRS 101
January 27, 2010
January 25, 2010


