Accounting for Share Capital — Chapter Summary
Gujarat Board · Class 12 · Elements of Accounts
Summary of Accounting for Share Capital for Gujarat Board Class 12 Elements of Accounts. Part of the Gujarat Board Class 12 Elements of Accounts syllabus.
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Overview
The chapter 'Accounting for Share Capital' explores how companies raise capital through the issuance of shares, governed by the Companies Act, 2013. After the industrial revolution, large-scale businesses required enormous capital that proprietorships and partnerships could not provide, giving rise
Key Concepts
Companies are broadly classified as Statutory
Companies are broadly classified as Statutory Companies (created by legislature, e.g., LIC) and Registered Companies (formed under Companies Act). Reg
Share capital is the total capital
Share capital is the total capital of a company divided into small transferable units called shares. Each share has a distinctive number and is a mova
Share capital is categorised into
Share capital is categorised into: (i) Authorised/Nominal/Registered Capital — maximum capital a company can raise, stated in the Memorandum of Associ
The process involves
The process involves: (1) SEBI permission via submission of an offer document; (2) Issuing a prospectus to the public; (3) Collecting share applicatio
Over Subscription
Over Subscription: Applications received exceed shares offered. Company may (a) allot full shares to some, (b) allot no shares to some, or (c) make pr
Learning Objectives
- Understand the concept and types of companies under the Companies Act, 2013
- Distinguish between preference shares and equity shares, and understand their respective types
- Learn the various types of share capital — authorised, issued, subscribed, called-up, paid-up, uncalled, and reserve capital
- Master the step-by-step process for issuing equity shares to the public
- Record journal entries for share application, allotment, and calls with and without calls-in-arrears
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Sources & Official References
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
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