ANAND

If any calls are received in advance Forfeiture of Shares Calls in Arrears If calls in arrears account is used then the arrear amount is kept in a separate account and the Share allotment or share call account are credited with the full amount. Journal entries will change as below : In case the whole

These terms often sound similar but they are considerably different. Face Value This is the value per share, which is fixed at the time of registration of the company. It is also known as nominal value or par value. This is the value per share, which is recorded in the memorandum of Association. It is

Share Capital can be of different types and each type is discussed below : Authorised Capital This is also known as nominal capital or registered capital This is the maximum amount of capital which the company can raise and for which the company has received approval from government (ROC). It is stated in the memorandum

The key points of difference between equity shares and preference shares are summarised as follows :

These are shares which gives the voting rights. So the equity shareholders are the real owners of the company as they participate in decision making. The voting rights are proportionate to the shares held with respect to the total equity share capital of the company. Equity shareholders can get the dividend only after the dividend