It increase liquidity.
Nominal share capital is like an authorized share capital. The share capital that the company allowed (the maximum amount) to issue as registered capital when the company is incorporated. It can be changed later by the approval of the shareholders.
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
Preference share capital means share capital which have preference over all other kind of share capital in term of profit and clearance at the time of dissolution of business.
Ordinary share capital is that type of share capital which receives share in profit in last or after all other third parties liabilities as well as preference share holders.
Disadvantage of share capital is that it increases the risk of default which causes the increase in cost of capital.
No
It increase liquidity.
[Debit] Cash / bank [Credit] Share capital
When bonus shares are issued share capital also change as amount from retained earnings or reserves is utilized to issue bonus shares and it increase the share capital while decrease the reserves or retained earnings.
debit cashcredit share capital
Yes share issue increase current assets as we received cash against share issuance and the general entry is: [Debit] Cash xxxxx [Credit] Share Capital xxxx
Following are different types of share capital. 1 - Preference share capital 2 - Common share capital
it going to increase
1. A company wants to increase capital using equity financing will involve in issuing share capital to public for subscription.
issued share capital
The authorised capital which is issued to the public is known as issued capital equity share capital is one of the class of capital