Archive | Company Accounts

The term share capital denotes the amount of capital raised or to be raised by the issue of shares by a company and is used in many expressions. The usual different expressions of share capital found…

Since 1948, when for the first time the importance of the public sector in the Indian economy was recognized, the public sector has experienced a phenomenal growth both in terms of number and volume of investment…

The Government, on 17 April 1982, have issued the following, revised guidelines for issue of debentures to the public by public limited listed companies in supersession of the guidelines issued earlier on 27 October 1980…

The following are the 8 important points of differences between Balance Sheet and Statement of Affairs like a Balance Sheet shows assets at book values, while a Statement of Affairs shows assets at book values, as well as realizable value…

Buyback of Shares and securities is popular in United States of America. Till October, 1998, the scheme of buyback of shares and securities was not known to the Indian companies. The Prime Minister…

The 4 important methods of valuing Goodwill are by an arbitrary assessment, by a capitalization of expected net profits or earnings (or Capitalization Method), by a certain number of years purchase of past average profits or earnings…

Preference shares enjoy preferential rights (a) as to the payment of divi­dend at a fixed rate during the life of the company, and (b) as to the return of capital on winding up of the company. If any shares carry…

Preference Share Capital is often considered as a hybrid form of financing because it has many features of both equity shares and debenture. It resembles equity capital in the following…

A bonus issue occurs where the company does not distribute its pro­fits and reserves by way of dividend, but retains them and uses them to pay for the issue of new fully paid shares. The shares so…

The valuation of shares may be done by an accountant for two reasons i.e. where there is no market price as in the case of a proprietary company and where for special reasons, the market price does not…

Multinational corporations (MNCs in short) are also known as Transnational Corporations (TNCs), Super National Enterprises, Global companies, cosmocorps and so on…

The complete information about the bonus shares, SEBI guidelines  and its  reserves for issue of bonus shares  are explained below….

The liquidator is required to prepare an account of winding up known as Liquidator’s Final Statement of Account after the affairs of the company are fully wound up. This account takes the form of Cash Account….

Purchase consideration is the amount which is paid by the transferee company for the purchase of the business of the transferor company. In other words consideration for amalgamation means me…

In this system, posting is made from slips prepared inside the organisation itself or from slips filled in by its customers. So entries are not made in the books of original entry or subsidiary books, but…