JABB AFB Unit 17 & 18 - Company Accounts

JABB AFB Unit 17 & 18 - Company Accounts (Year: 2019)

Features of a Joint stock Company

  1. Incorporated association
  2. Artificial person
  3. Perpetual succession
  4. Common seal
  5. Limited liability
  6. Separation of management from ownership
  7. Transferability of shares
  8. Separate legal status
  9. Large membership

Types of companies

On the basis of incorporation

On the basis of  ownership

On the basis of liability

Chartered company

Private company

Co.limited by shares

Statutory company

Public company

Co. Ltd. by guarantee

Registered company

Government company

Co. with unlimited liability

Foreign company

Holding company

 

 

SHARE CAPITAL

  1. EQUITY
  2. PREFERENCE
        1. CUMULATIVE
        2. REDEEMABLE
        3. PARTICIPATING
  1. AUTHORISED CAPITAL
  2. ISSUED CAPITAL
  3. SUBSCRIBED CAPITAL
  4. CALLED CAPITAL
  5. PAID UP CAPITAL

 

ISSUE OF SHARE AT PAR


-BANK
- SHARE APPLICATION

Debited
-

-
credited

SHARE APPLICATION
SHARE CAPITAL

Debited
-

-
Credited

Over subscription
-share application
-share capital
-bank (refund)
-share allotment

Debited
-
-
-

-
Credited
Credited
Credited

SHARE ALLOTMENT/SHARE CALL


Share allotment a/c
Share capital a/c

Debited
-

-
Credited

Bank a/c
Share allotment a/c

Debited
-

-
Credited

Share call a/c
Share capital a/c

Debited
-

-
Credited

Bank a/c
Share call a/c

Debited
-

-
Credited

Calls in arrears a/c
Share allotment a/c
Share call a/c

Debited
-
-

-
Credited
Credited

Issue of shares at premium


Share application/
allotment a/c
Share capital A/c
Share premium A/c

Debited
-
-

-
Credited
Credited

Issue of shares at discount


Share allotment A/c
Discount on issue of shares A/c
Share capital A/c

Debited
Debited
-

-
-
Credited

Forfeiture of shares


Share capital A/c
Call in arrears A/c
Forfeited shares A/c

Debited
-
-

-
Credited
Credited

Re-issue of shares


Bank A/c
Forfeited shares A/c
Share capital A/c
Capital reserve A/c

Debited
Debited
-
-

-
-
Credited
Credited

Issue of Bonus shares


Cap. Red. Reserve A/c
Share premium A/c
Capital reserve A/c
Gen Reserve A/c
Profit & Loss A/c
Bonus to shareholders A/c

Debited
Debited
Debited
Debited
Debited
-

-
-
-
-
-
credited

Bonus to shareholders A/c
Equity share capital A/c

Debited

-
credited

Balance sheet equation


LIABILITIES

ASSETS

Capital

300.00

Fixed assets

700.00

Reserves

200.00

Current assets

300.00

Term Loans

300.00

   

Current Liabilities

300.00

   

Total

1000.00

Total

1000.00

Balance sheet equation


Assets

=

Liabilities

 

Assets

=

Liabilities (+)

Capital

Liabilities

=

Assets (-)

Capital

Capital

=

Assets (-)

Liabilities

Assets = Liabilities
Assets = Capital + Liabilities
Assets =Net worth + Liabilities
Net worth = Capital + Reserves& Surplus
Net worth = Assets Less Liabilities

B/s Equation Example

If the net worth of the business is Rs.1100,fixed assets are Rs. 600, current assets Rs.400, nvestments Rs.300, current liabilities Rs. Nil, what is the amount of claim to outsiders?

    1. Rs. 1300l
    2. Rs. 500
    3. Rs.200
    4. Rs. Nil

Ans – c

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