Chapter No. 1 – Company Accounts (Share Capital)- Unimax Publications Class 12 Part 2- Solution

Chapter No. 1 – Company Accounts (Share Capital)- Unimax Publications Class 12 Part 2 chapter covers the topic of Company Accounts, specifically focusing on Share Capital. This chapter is essential for students who wish to pursue a career in accounting or finance and want to gain a deeper understanding of how companies raise capital through the issuance of shares.

Types of Shares Issued by Companies

In this chapter, students will learn about the various types of shares that a company can issue, including equity shares, preference shares, and debentures. The chapter also covers the process of issuing shares, including the role of underwriters, the prospectus, and the allotment of shares.

Types of Capital: Authorized, Issued, Subscribed, and Paid-up Capital

One of the key concepts covered in this chapter is the distinction between authorized, issued, subscribed, and paid-up capital. Authorized capital is the maximum amount of capital that a company is authorized to raise through the issuance of shares. Issued capital refers to the actual number of shares that the company has issued to shareholders. Subscribed capital is the amount of capital that shareholders have agreed to subscribe to, while paid-up capital is the amount of subscribed capital that has been paid by shareholders.

Accounting Treatment of Share Capital

The chapter also covers the accounting treatment of share capital, including the various types of accounts that are used to record share capital transactions. These accounts include the Share Capital account, the Share Application account, the Share Allotment account, the Share Forfeiture account, and the Share Redemption account.

Practical Examples and Exercises for Share Capital Accounting

In addition to theoretical concepts, the chapter also includes practical examples and exercises that allow students to apply their knowledge of share capital accounting. These exercises range from simple calculations of authorized, issued, subscribed, and paid-up capital to more complex scenarios involving the issuance of different types of shares and the redemption of shares.

Conclusion: Importance of Studying Share Capital Accounting

Overall, Chapter No. 1 of the Unimax Publications Class 12 Part 2 textbook provides students with a comprehensive overview of share capital accounting for companies. By studying this chapter, students will gain a deep understanding of the various types of shares that a company can issue, the process of issuing shares, and the accounting treatment of share capital transactions. This knowledge will be invaluable for students pursuing careers in accounting, finance, or business, as well as anyone looking to invest in shares or start their own company.

Check out our full article on what is a company and its characteristics: –

What is the Company and its Characteristics

Chapter No. 1 – Company Accounts (Share Capital)- Unimax Publications Class 12 Part 2- Solution

Question-wise solution of all Questions of Chapter No. 1 – Company Accounts (Share Capital)- Unimax Publications Class 12 Part 2- Solutions are shown below: –