Commerce Aspirant Writing off Discount/Loss on Issue of Debentures: When debentures are issued at a discount or any Loss on issue of debentures arises, it is required to be written off during the year in which such issue is made. It is a capital loss in nature. The securities premium reserve available can be used to write … Read more
Debentures are an instrument, an acknowledgement of debt, issued under the common seal of the company which is duly signed by authorized signatory and is an agreement for the repayment of principal sum and interest at a specified rate on a specified date. They are categorised as the liability of the company. With respect to … Read more
Terms of Issue of Debentures – At the time of issue of debentures, the terms on which they are issued and will be redeemed are specified. These terms of issue of debentures and other conditions could result in six different kinds of situations. These are – Issue at par and redemption at par Issue at … Read more
Over Subscription: At the point when the quantity of debentures applied for is more than the quantity of debentures offered by the company to the general public, the issue is said to be oversubscribed. A company, in any case, can’t assign a bigger number of debentures than it has invited for subscription. However, any abundance … Read more
Issue of Debentures – Basic Concept Debenture is an instrument, which acknowledges a debt due from a company. It is issued under the common seal of the company and is duly signed by authorized signatory. It is an agreement for the repayment of principal sum of debenture and interest at a specified rate on a … Read more
Meaning of Debentures Debentures are an instrument, an acknowledgement of debt, issued under the common seal of the company which is duly signed by authorized signatory and is an agreement for the repayment of principal sum and interest at a specified rate on a specified date. According to Topham “A debenture is a document given … Read more
Meaning of Forfeiture of Shares Class A shareholder who subscribes to shares is required to make total amount payable for subscription of such shares, in various installments , which are agreed at the time of the issue, which can be as under : – At the time of Application ; At the time of Allotment … Read more
Meaning of Share Capital – Meaning of Share – Where the total capital of the company is divided into smaller units, then each such unit is known as a Share. Types of Share There are two types of Shares : – Equity Share Preference Share Difference between Equity Share and Preference Share Basis Equity Share … Read more
Issue of Shares The issue of shares is the procedure where enterprises dispense new shares to the shareholders. Shareholders can be either corporate or individuals. The enterprise keeps the standards specified by Companies Act 2013 while circulating the shares. The Issue of Prospectus, Receiving Applications and Allocation of Shares are three key strides of the … Read more
Nature and Classes of Shares Class 12 The nature and classes of share capital can be better understood once one is aware of what a share is.The shares are a unit which provides ownership interest to an individual in a company. The total share capital of a company is constituted of various smaller units known … Read more