0
No, share value at par is considered while calculating paid up capital.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
What are the different types of equity share capital?
Types of shares : Shares in the company may be similar i.e they may carry the same rights and liabilities and confer on their holders the same rights, liabilities and duties. There are two types of shares under Indian Company Law :-1.Equity shares means that part of the share capital of the company which are not preference shares.2.Preference Shares means shares which fulfill the following 2 conditions. Therefore, a share which is does not fulfill both these conditions is an equity share.a. It carries Preferential rights in respect of Dividend at fixed amount or at fixed rate i.e. dividend payable is payable on fixed figure or percent and this dividend must paid before the holders of the equity shares can be paid dividend.b. It also carries preferential right in regard to payment of capital on winding up or otherwise. It means the amount paid on preference share must be paid back to preference shareholders before anything in paid to the equity shareholders. In other words, preference share capital has priority both in repayment of dividend as well as capital.In Companies, the words 'Capital' and 'Share Capital' are used interchangeably. The raising of capital by issuing the shares is known as Share Capital. Share Capital is a permanent liability of a company. Memorandum of Association must contain all the features of a company's share capital i.e. amount, its division into shares etc.Types of Share Capital:- Authorised, Issued, Subscribed, etc.Detailed meaning of all here: http://financenmoney.in/what-is-share-capital/
Are owners fund part of share capital?
Yes
Why is share of common stock an asset for its owner and liability for corporation?
A single share is a part of capital of the company so if anybody purchase the share of company that person is investing in the share capital of company and providing the company necessary money to operate that's why it is the investment of the owner of share which is called then the shareholder of company and that shares becomes the asset of the shareholders and while company is acquiring capital in the shape of shares that's why it is the liability of the corporation to pay back that amount of money back to the shareholders at certain time or at liquidation as written in the agreement to raise the capital through share issue.
What are the various kinds of capital?
1- Authorized Capital ( legally permitted number of shares) i,e 20 million dollars2- Subscribed Capital/issued capital (sold or issued but not paid yet by the holders)i,e 17 million dollars3- Called up Capital ( company asks or calls to pay certain number of shares)i,e 17 million dollars4- Paid up Capital (this is actually paid by holders, amount reflects in Balance sheet)i,e 16 million dollarsCapital:The term capital means the amount of money invested by the owner in the business to start a business. In case of Joint Stock Company the term share capital refers to the amount of money raised by the issue of shares.Kind of Capital:Authorized Capital:The authorized capital is also called nominal or registered. This is the maximum amount of capital which a company is authorized to issue. The amount of authorized capital is mentioned in the capital clause of memorandum of association along with its division into shares of fixed amount, for example 20 million dollars of 20 dollars eachIssued Capital:Issued capital is that part of authorized capital which is offered to the public for subscription or for the sale of shares. For example, if the authorized capital of a company is 20 Million and the company issues shares valuing 17 million $ then the issued capital of the company is 17 million $.Un-issued Capital:The Portion of the authorized capital, which is not offered to the public for the sale of shares are known as un-issued capital. In the above example the un-issued capital of the company is 3 million $.Called-up Capital:The part of the subscribed capital, which in fact the company asks the shareholders to pay, is called the called up capital. for example company asks to pay 17 million so this is called up captialPaid up capital:this is the portion of that share which are acutally paid and it is shwon in the balance sheet, for example out of 17 milllion 16 million is paid by the holders so 16 million is paid up capital and it is shown in the balance sheetCapital:In simple words the term capital means the amount of money invested by the owner in the business to start a business. In case of Joint Stock Company the term share capital refers to the amount of money raised by the issue of shares.Kind of Capital:Authorized Capital:The authorized capital is also called nominal or registered. This is the maximum amount of capital which a company is authorized to issue. The amount of authorized capital is mentioned in the capital clause of memorandum of association along with its division into shares of fixed amount.Issued Capital:Issued capital is that part of authorized capital which is offered to the public for subscription or for the sale of shares. For example, if the authorized capital of a company is 10 Million and the company issues shares valuing 7 million $ then the issued capital of the company is 7 million $.Un-issued Capital:The Portion of the authorized capital, which is not offered to the public for the sale of shares are known as un-issued capital. In the above example the un-issued capital of the company is 3 million $.Called-up Capital:The part of the subscribed capital, which in fact the company asks the shareholders to pay, is called the called up capital.
Is subscribed capital stock added or deducted on capital stock?
The subscribed capital stock account is only issued when fully paid. The initial entry will require a debit to cash and subcription receivable account with a corresponding credit to 'Subcribed Capital Stock' and APIC (add'l paid in capital) if issued above par. Now, when it is presented in the financial statements, the subcribed capital stock will be added to the common stock issued and fully paid. However, the account will also be reduced by the subscription receivable balance. Take note: When the subscription receivable is expected to be paid in the current period, it will presented under trade and other receivables, as a part of current assets.
Is share premium paid part of paid up capital?
Yes share premium paid is part of paid up capital and shown separately as share premium account in equity section of balance sheet.
Capital paid in excess of par common stock?
Capital amount paid for excess of par value of common stock is called "Share premium amount" which is also part of capital of business.
Should the share premium be regarded as part of the paid up capital of the firm?
That part which has been paid should. Shares are sometimes issued and then called in stages; the full issue amount can be paid in installments. If shares are issued and part paid, the unpaid part is (obviously) not paid up. Perhaps the answer you are looking for is the fact it is Share Premium, rather than Nominal, makes no difference. (In fact, the premium bit is more or less meaningless. It just reconciles issuing 10p nominalm shares for (say) £1.00. They are 10p nominal shares with a 90p premium rather than £1.00 shares. If there is a subsequent rights issue at (say) £2.00 per share, each will have a £1.90 premium. The only values that really mean anything are the issue amounts of £1.00 and £2.00 (real money changes hands). The rest are paper numbers. Neither says anything about value; that is determined by demand and supply on the stock exchange.
What is subscribed capital stock?
Subscribed share capital stock is that capital for which investors actually paid money or subscribed while unsubscribed capital is that part of issued capital for which nobody subscribed or nobody purchased stocks.
What is subscribed capital?
Subscribed capital refers to the portion of a company's authorized capital that has been reserved by shareholders through subscription, but may not have been fully paid in yet. It represents the maximum amount of capital that can be called upon by the company for subscription.
Where does additional paid in capital belong in the elements of financial statements?
Additional paid in capital is also part of paid in capital of business and shown as an addition to already exists paid in capital of business.
Where does security premium come in cash flow statement?
Security premium is part of cash flow from financing activities
Which would be considered to be internally generated paid in capital or retained earnings?
Retained earnings is called internally generated by company as this is the profit part which earns business during fiscal year while paid in capital is the actual invested amount by share holders of company.
What are the different types of equity share capital?
Types of shares : Shares in the company may be similar i.e they may carry the same rights and liabilities and confer on their holders the same rights, liabilities and duties. There are two types of shares under Indian Company Law :-1.Equity shares means that part of the share capital of the company which are not preference shares.2.Preference Shares means shares which fulfill the following 2 conditions. Therefore, a share which is does not fulfill both these conditions is an equity share.a. It carries Preferential rights in respect of Dividend at fixed amount or at fixed rate i.e. dividend payable is payable on fixed figure or percent and this dividend must paid before the holders of the equity shares can be paid dividend.b. It also carries preferential right in regard to payment of capital on winding up or otherwise. It means the amount paid on preference share must be paid back to preference shareholders before anything in paid to the equity shareholders. In other words, preference share capital has priority both in repayment of dividend as well as capital.In Companies, the words 'Capital' and 'Share Capital' are used interchangeably. The raising of capital by issuing the shares is known as Share Capital. Share Capital is a permanent liability of a company. Memorandum of Association must contain all the features of a company's share capital i.e. amount, its division into shares etc.Types of Share Capital:- Authorised, Issued, Subscribed, etc.Detailed meaning of all here: http://financenmoney.in/what-is-share-capital/
What are the different types of share capital?
Types of shares : Shares in the company may be similar i.e they may carry the same rights and liabilities and confer on their holders the same rights, liabilities and duties. There are two types of shares under Indian Company Law :-1.Equity shares means that part of the share capital of the company which are not preference shares.2.Preference Shares means shares which fulfill the following 2 conditions. Therefore, a share which is does not fulfill both these conditions is an equity share.a. It carries Preferential rights in respect of Dividend at fixed amount or at fixed rate i.e. dividend payable is payable on fixed figure or percent and this dividend must paid before the holders of the equity shares can be paid dividend.b. It also carries preferential right in regard to payment of capital on winding up or otherwise. It means the amount paid on preference share must be paid back to preference shareholders before anything in paid to the equity shareholders. In other words, preference share capital has priority both in repayment of dividend as well as capital.In Companies, the words 'Capital' and 'Share Capital' are used interchangeably. The raising of capital by issuing the shares is known as Share Capital. Share Capital is a permanent liability of a company. Memorandum of Association must contain all the features of a company's share capital i.e. amount, its division into shares etc.Types of Share Capital:- Authorised, Issued, Subscribed, etc.Detailed meaning of all here: http://financenmoney.in/what-is-share-capital/
Are owners fund part of share capital?
Yes
Is share capital an equity?
Yes share capital is part of equity which may includes other kind of capital as well like owner’s capital etc
