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WHEN SUBSCRIBED SHARES ARE FULLY PAID-UP. ACCOUNTING FOR SHARE CAPITAL.

  ILLUSTRATIONS   FIRST CASE WHEN SUBSCRIBED SHARES ARE FULLY PAID-UP   Brave Ltd. is registered with capital of Rs.10,00,000 divided into 1,00,000 Equity Shares of 10 each. It issued 75,000 Equity Shares to the Public for subscription. It received applications for 70,000 Equity Shares. The Directors called Rs.10 per share which was received. How will Share Capital be shown in the Balance Sheet of Brave Ltd.?                            Brave Ltd .          BALANCE SHEET(EXTRACT) as at….   Particulars                                          Note no. Amou...

RESERVE CAPITAL AND CAPITAL RESERVE UNDER COMPANIES ACT,2013. ACCOUNTS BY SONIA SETIA.

  RESERVE CAPITAL AND CAPITAL RESERVE Under the Companies Act 2013, there isn't a specific provision for "reserve capital" as was the case in earlier company law statutes. However, the concept of "capital reserve" is still recognized and regulated under the Companies Act 2013. Let's delve into both:   1. Reserve Capital:    - Reserve capital, as a term, was explicitly defined and regulated under earlier company law statutes, such as the Companies Act, 1956. It represented a portion of a company's authorized share capital that was kept aside and not available for distribution as dividends.    - Reserve capital was meant to provide a safeguard for the company's creditors in case of insolvency or liquidation.    - However, under the Companies Act 2013, the concept of reserve capital was not carried forward. Instead, the Act focuses more on the categorization and utilization of reserves, including capital reserves.   2. Capital Re...
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“Called-up” and “Paid-up” Capitals.Under the Companies Act 2013.

  “Called-up” and “Paid-up” Capitals Under the Companies Act 2013, "called-up capital" and "paid-up capital" are terms associated with a company's capital structure. Here's an elaboration on both:   1 . Called up Capital :    - Called-up capital refers to the portion of share capital that a company has called or demanded from shareholders.    - When a company issues shares, it may not require shareholders to pay the entire value immediately. Instead, it may ask them to pay in installments or on a specified schedule.    - Called-up capital represents the amount that the company has asked shareholders to pay at a particular point in time, whether in full or in part.   2 . Paid up Capital :    - Paid-up capital refers to the portion of called-up capital that shareholders have actually paid to the company.    - It represents the amount of money that shareholders have contributed to the company by purchasin...