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Accounting for Share Capital — Chapter Summary

Madhya Pradesh Board · Class 12 · Accountancy

Summary of Accounting for Share Capital for Madhya Pradesh Board Class 12 Accountancy. Part of the Madhya Pradesh Board Class 12 Accountancy syllabus.

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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Overview

Share capital is the money raised by a company through the issue of shares. A company is a separate legal person, distinct from its shareholders, and its management is carried out by a Board of Directors. Share capital may be collected in stages such as application, allotment, and calls. The chapter

Key Concepts

A company is an artificial

A company is an artificial, invisible and intangible person existing only in the eyes of law. It has a separate legal identity and can own property, e

Share capital is the amount contributed

Share capital is the amount contributed by shareholders in exchange for shares. It is the main source of ownership capital for a company.

Authorised capital is the maximum amount

Authorised capital is the maximum amount of share capital a company is authorised to issue by its Memorandum of Association. It is also called nominal

Issued capital is the part

Issued capital is the part of authorised capital that is actually issued to the public, including shares allotted to vendors and signatories to the me

Subscribed capital is the part

Subscribed capital is the part of issued capital actually subscribed by the public. Over-subscription is not reflected in the books.

Learning Objectives

  • Understand the nature of a company and its separate legal identity.
  • Explain the main kinds of companies based on liability and number of members.
  • Classify share capital into authorised, issued, subscribed, called-up, paid-up, uncalled and reserve capital.
  • Distinguish between preference shares and equity shares.
  • Record accounting entries for issue of shares at par, premium, and discount where permitted.

Frequently Asked Questions

What are the important topics in Accounting for Share Capital for Madhya Pradesh 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 Madhya Pradesh Board Class 12 board exam.
How should I revise Accounting for Share Capital for the Madhya Pradesh 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 Madhya Pradesh Board Class 12 Accountancy Chapter Summary

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