Corporate Accounting by Universty Of Calicut Pdf
Download Corporate Accounting by University Of Calicut Pdf book free online – from Corporate Accounting by Universty Of Calicut Pdf book; This lecture note explains the following topics: Accounting for Share Capital, Final Accounts of limited lability Companies, Accounting for Amalgamation and Internal Reconstruction, Final Accounts of Banking Companies, Final Accounts of Insurance Company.
Capital is essential for a trading concern. A company collects capital by inviting the public to buy its shares through a document known as prospectus. The capital is usually divided into different units with definite value called shares.
A share is not a sum of money but is an interest measured by a sum of money, and made up of various rights contained in the contract. A share is a fractional part of the share capital which forms the basis of ownership in a company. Share capital refers to the amount of capital raised or to be raised by a company by the issue of shares.
Book building is a process of fixing price for an issue of securities on a feedback from potential investors based upon their perception about a company. It involves selling an issue step-wise to investors at an acceptable price with the help of a few intermediaries/merchant bankers who are called book runners. Under book building process, the issue price is not determined in advance, it is determined by the offer of potential investors.
When shares are allotted to an applicant, it becomes a contract between the shareholder & the company. The shareholder is bound to contribute to the capital and the premium if any of the company to the extent of the shares he has agreed to take. as & when the Directors make the calls. If he fails to pay the calls then his shares may be forfeiture by the directors if authorised by the Articles of Association of the company.