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Accounting for Share Capital — Revision Notes

Jammu & Kashmir Board · Class 12 · Accountancy

Accounting for Share Capital revision notes for Jammu & Kashmir Board Class 12 Accountancy: 4 topics in quick points.

81 questions72 flashcards5 concepts

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An infographic illustrating the main features of a company: Separate Legal Entity, Limited Liability, Perpetual Succession, Common Seal, Transferability of Shares, and May Sue or be Sued. Each feature
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Key Topics to Revise

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1. Nature of a Company and Kinds of Companies

  • A company is an artificial person created by law and separate from its members.
  • Shareholders are the real owners, but management is generally handled by the Board of Directors.
  • A company can sue and be sued in its own name and can hold property in its own name.
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2. Categories of Share Capital

  • Authorised capital is the maximum share capital a company is authorised to issue by its Memorandum of Association.
  • Issued capital is the part of authorised capital actually issued to the public for subscription, including shares allotted to vendors and signatories to the memorandum.
  • Subscribed capital is the part of issued capital actually subscribed by the public.
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3. Types of Shares

  • A company can issue preference shares and equity shares.
  • Preference shares carry a preferential right to dividend and preferential right to repayment of capital on winding up before equity shareholders.
  • Preference shares can be participating or non-participating, cumulative or non-cumulative, and redeemable or irredeemable.
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4. Issue of Shares and Minimum Subscription

  • Shares may be issued at par or at premium.
  • Shares issued at par are issued at a price equal to nominal value.
  • Shares issued at premium are issued above nominal value; the extra amount is premium.

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Full Notes

Key Concepts

A company is an artificialShare capital is the amount contributedAuthorised capital is the maximum amountIssued capital is the partSubscribed capital is the part

Frequently Asked Questions

What are the important topics in Accounting for Share Capital for Jammu & Kashmir Board Class 12 Accountancy?
Key topics in Accounting for Share Capital include Nature of a Company and Kinds of Companies, Categories of Share Capital, Types of Shares, Issue of Shares and Minimum Subscription. Study these first, then practise questions on each for the Jammu & Kashmir Board Class 12 board exam.
How should I revise Accounting for Share Capital for the Jammu & Kashmir Board Class 12 board exam?
Learn the core ideas first, then work through the 81 practice questions on Accounting for Share Capital. Revise definitions regularly and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

More resources for Accounting for Share Capital

All Jammu & Kashmir Board Class 12 Accountancy Revision Notes

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