Chapter 5 · Part 2

Accounting for Share Capital

How companies raise money — shares, calls, forfeiture & re-issue.

Concepts

Formulae

16 min

Read time

Intermediate

Learning objectives

1Explain learning Objectives
2Explain nature and Features of a Company
3Explain definition of Company
4Explain features of a Company
5Explain body Corporate
6Explain separate Legal Entity

Your learning path

Introduction

Learning Objectives

1. Nature and Features of a Company

Definition of Company

Features of a Company

1. Body Corporate

2. Separate Legal Entity

3. Limited Liability

4. Perpetual Succession

Worked Example

Summary

Quiz

Revision

Follow the full path

Key terms

Journal EntryPremiumForfeiturecannot exceedCapital ReserveCalls in Arrearsnon-participatingShare Forfeiture Accountbefore equity shareholdersshareby lawlapsescapitalCompanyNo limitany time

Connected chapters

Reconstitution of a Partnership Firm – Admission of a Partnershares: Journal Entry Reconstitution of a Partnership Firm – Retirement/Death of a Partnershares: Journal Entry Dissolution of Partnership Firmshares: Journal Entry Issue and Redemption of Debenturesshares: Journal Entry

70Concepts

6Formulae

16Minutes

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