Issues Of Share

Question 1

What is Share

Answer 1

Share is a Share in a Share capital of a company

Question 2

Types of share

Answer 2

Preference they have right to receive dividend or capital before equity
Equity : Real owners of customers other than preference share

Question 3

Share can be issued at
And can’t be issued

Answer 3

Share can’t be issued at discount
Exception. In case of swear equity shares
At par . Value at face value ‘ issue =Par value
Premium: value more than face value . Issue price > face value

Question 4

Going concern
Gone concern

Answer 4

Preference require dividend before equity

Preference require share in capital before equity

Question 5

Categories of capital

Answer 5

Authorized capital / Registered capital
This will be mentioned in clause of MDA

Question 6

Categories of capital
Parts

Answer 6

Issued capital. Unissued capital
Subscribed capital. Unsubscribed capital

Called up capital. Un called capital
Paid up capital. Un paid up capital

Question 7

Shares issued for cash at

Answer 7

Lumpsum and installment collection

Question 8

Issue of share in lumpsum journal

Answer 8

Receipt

Bank ac
To share application

And transfer entry
Issued at par
Share applications
To share capital
To bank ..extent to refund

Issued at premium
Share applications
To share capital
To securities premium
To bank

Question 9

Issued in installment

Answer 9

Receipt entry
Transfer entry
Due entry
Receipt entry

Bank ac
To share application

Share applications
To share capital

Due entry
Share allotments ac
To share capital

Bank ac
To share allotment

Share first call
To share capital

Bank ac
To share first call

Share final call
To share capital

Bank ac
To share final call