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Minimum Subscription [section 39(1) of Companies Act 2013] and Preliminary expenses   Hey guys, Welcome back!!! I know you are here to know more about companies and want yourself enrich with a vast and rich knowledge about subscription of shares and important issues of companies… I know, you love to know every single information about Companies and Companies Act, so I thought to write an another related article on shares which will keep your interest into companies and will keep yourself enrich with provisions of Companies Act. Before start talking to on the topic I would like to thank you!! As you people loved the previous articles written on shares and share capital etc. This motivates me to share my knowledge with you…… thank you once again….. Now the wait is over!!!!!!! I am discussing about the minimum subscription which is covered under section 39(1) of companies act as well as under provisions of SEBI. Ok….now listen carefully

 Types of shares (section 43 of Companies Act 2013) Hey guys, Welcome back!!!!!! Have you read our previous blogs on shares?   Yes….?? Then, Congrats!!! You have understood about shares and types of share capital in the company which will help you to build your understanding into companies. So, today I have decided to talk to you about types of shares which are covered under section 43 of the companies act 2013.      This article will help you to secure good marks in your accountancy exam as well as will provide you quality information about shares.    So listen carefully….  There are two types of shares: 1. Preference shares 2. Equity shares Preference shares:   preference shares are the shares which carry the following two preferential rights: Number one: Preferential right to receive dividend (dividend on these shares may be fixed as amount or can be calculated at fixed rate.) Number two: Return of capital on the winding up of the co

 Types of Share capital Hlo guys Welcome back!!! I know you are waiting for this… you want to know about types of share capital as simple as you learned about what is share. So your wait is over!!!! Here is what you are searching for: There are four types of share capital or we can say we can categorise it into four types. 1. Authorised share capital 2. Issued share capital 3. subscribed and fully paid up share capital 4. subscribed but not fully paid up share capital Now I am explaining each of above into few minutes so listen carefully. Trust me You   will find it simple. Yeahhh it is simple!!!!! So listen, Your question : What is authorised share capital? Me : it is that amount of capital beyond which no company can issue it’s share to public at any time. Means company cannot issue shares more than the authorised share capital. Sounds simple??  Great !!!!! It is also known as Registered capital or nominal capital. It is showed in share ca

Hlo guys  Do you want to know about Shares or share capital??  Because it is not only important for your exam but also for your knowledge about companies and startups.    Yaa It is not only important for being a meritorious student of accounts but also for your upcoming future relating to companies So here is what you are searching for: “Shares, shares are the smallest units of share capital”  Company needs capital to run the business so it collects money from public at large in form of shares as small portion or contributions which in turn converted into larger amount of share capital. you can also calculate it!!      Surprised!!!!! Yeah you can!!   It is as simple as you see dreams in the night. So listen carefully,   You have to divide share capital of the company by the face value of share. Sounds Simple??? Yeah simple , see the formula    No. of share = share capital/ face value of share     Suppose,  Itc ltd. Which is

Sometimes it is decided by the existing partners to change their Profit sharing ratio. This change may result in gain to a few partners and loss to others. The partners who are going to gain due to this change in the profit sharing ratio should compensate the sacrificing partner/partners. Hence for this purpose a few adjustments have to be made in the books of the firm. These adjustments are:- 1) Adjustment for goodwill; 2) Revaluation of assets and liabilities; 3) Adjustments of reserves, accumulated profits and losses if any etc. 1) Adjustment for Goodwill:  A change in the profit sharing ratio of the firm means that the gaining partner is going to purchase from the sacrificing partner his share of profits. The gaining partner must compensate the sacrificing partner by paying the sacrificing partner by paying him the proportionate share of goodwill which is equal to share gained by him. 2) Revaluation of assets and liabilities: The assets and liabilitie

Guarantee of  profit in Partnership Accounts Sometimes, a partner is admitted in the firm on guarantee in respect of his minimum share of profit from the business. Such a guarantee can be given even to an existing partner also. Such a guarantee to the incoming partner is given either by the firm i.e. by all the old partners in an agreed ratio, or  some of the old partners or any one of the old partners When all the partners guarantee that one of the partners shall be given a minimum amount of profit, we should calculate the following two amounts separately:  Share of profit of the guaranteed partner as per profit sharing ratio, and Minimum guaranteed amount of profit of the guaranteed partner. The higher of the above two is to be given to that partner. The balance of profit (total profit minus profit given to the guaranteed partner) is to be shared by the remaining partners in their respective profit -sharing ratio. When the new partner’s share of pro

 Dear readers , are you planning for board exams 2018-19. We assure you that in this journey we are also with you. We have planned some question series for important topics of Accountancy. you need to visit day to day for download the series. If you find any doubt while solving the question you may ask in comment box or mail us.  Here we are providing some recommended questions which deals with PAST ADJUSTMENT and P&L APPROPRIATION A/C. You may download the PDF by following the arrow on right side the box. share and follow us on https://gocommerc.blogspot.com If you want more question on this topic then tell us in comment box.