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Revision Notes

Accounting for Share Capital

Jammu & Kashmir Board · Class 12 · Accountancy

Quick revision notes for Accounting for Share Capital — Jammu & Kashmir Board Class 12 Accountancy. Key concepts, formulas, and definitions for last-minute revision.

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

1

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?
Accounting for Share Capital covers several key topics that are frequently asked in Jammu & Kashmir Board Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Accounting for Share Capital — Jammu & Kashmir Board Class 12 Accountancy?
Understand the core concepts first, then work through the 81 practice questions available for this chapter. Revise formulas and 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.

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