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CBSE Class 12-commerce Answered

  What do you mean by share Capital of Company and straight the role of share capital of a public company.   Wright the journal Entry when share are issued at a premium and for bited and ressusd whith imaginary figures. So a speciment of balance sheet of a company with imaginary figure.
Asked by sachinxalxo72 | 09 Oct, 2018, 04:02: PM
answered-by-expert Expert Answer
Share Capital consists of amount that has been raised by the company by issue of shares or amount that a company has received towards Share Capital from issue of both equity and preference shares. 
One of the unique characteristics of a public company issuing share capital is "Transferability". The shares of company are freely transferable unlike private companies where transfer is regulated by its Articles of Association. Also, liability of members is limited to the amount of shares held by them, except for companies with unlimited liability.
To discuss and understand Accounting treatment of shares originally issued at premium forfeited and then re-issued refer to attachment below.
 
For understanding the disclosure of share capital in the Balance Sheet, refer to the image provided below.
 
Answered by | 09 Oct, 2018, 04:48: PM

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