Accounting for Shares and Debentures

|Company Accounts |
|Accounting for Share Capital 1 |
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| |Syllabus |
| |Ø Share capital: Meaning, nature and types |
|Shares and Share |Ø Accounting for share capital: issue and allotment of equity and preference shares, private placement of |
|Capital |shares, meaning of employee stock option plan, public subscription of shares; over subscription and under |
|Types of share |subscription; issue at par, premium and at discount; calls in advance, calls in arrears, issue of shares for |
|capital |consideration other than cash |
|Accounting for |Ø Forfeiture of shares: accounting treatment, re-issue of forfeited shares |
|share capit |Ø Presentation of Share Capital and Debenture in company’s Balance Sheet |
|Authorized capital| |
|Issued capital |Joint Stock Company is the most practical form of organization for large scale business. In India the Indian |
|Subscribed capital|Companies Act of 1956 governs joint stock companies. The capital of the company is divided into shares