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Difference between issued share capital and equity 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
What is the effect of a bonus issue on the share capital and share premium account?
Bonus shares increases the share capital while reduces the share premium account because amount of share premium is used to issue bonus shares.
What is capital redemption reserves?
Capital Redemption Revere is an reserve created when a company buys it owns shares which reduces its share capital. This reserve is not distributable to shareholders and can be used to pay bonus shared issued.
is the total amount of issued share capital for which the shareholders are required to pay is the authorized share capital or issued share capital or call up share capital or paid up share?
The total amount of issued share capital for which shareholders are required to pay is referred to as "issued share capital." This represents the portion of the authorized share capital that has been allocated to shareholders and is under their obligation to pay. In contrast, "paid-up share capital" refers to the amount that shareholders have actually paid, while "call-up share capital" pertains to amounts that may be called for payment in the future.
What is Reserved Share Capital?
Reserved share capital is that portion of capital which is reserved for some specific tasks like issue of new share or bonus shares etc in future course of business when new capital required by company.
Difference between issued share capital and equity 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
Do you use the authorised share capital or issued share capital when getting the dividends declared?
issued share capital
What is the effect of a bonus issue on the share capital and share premium account?
Bonus shares increases the share capital while reduces the share premium account because amount of share premium is used to issue bonus shares.
What is capital redemption reserves?
Capital Redemption Revere is an reserve created when a company buys it owns shares which reduces its share capital. This reserve is not distributable to shareholders and can be used to pay bonus shared issued.
is the total amount of issued share capital for which the shareholders are required to pay is the authorized share capital or issued share capital or call up share capital or paid up share?
The total amount of issued share capital for which shareholders are required to pay is referred to as "issued share capital." This represents the portion of the authorized share capital that has been allocated to shareholders and is under their obligation to pay. In contrast, "paid-up share capital" refers to the amount that shareholders have actually paid, while "call-up share capital" pertains to amounts that may be called for payment in the future.
How Issue of bonus shares affects the total capital structure of the company?
The issuance of bonus shares generally does not affect the total capital structure of a company in terms of total equity, as it redistributes retained earnings into issued share capital without raising new funds. However, it increases the number of shares outstanding, which can dilute earnings per share (EPS) and potentially influence market perceptions. Additionally, the market capitalization may adjust as investors react to the change in share structure. Overall, while the total capital remains unchanged, the composition and market perception of the equity can shift.
How do you account for Issued Share Capital?
[Debit] Cash / bank xxxx [Credit] Share capital account xxxx
Authorized and issued share capital?
Authorized share capital is that maximum amount of share capital a company can do it’s business and return in article of association of company and company cannot raise more capital then this limit unless changes the limit of authorized capital.Issued share capital is that amount of capital which is issued to public for purchase or invest in company.
What is subscribed capital?
The individual subscribed share value and liability of the total share capital of a company. In detail: Par value of that part of the authorized share capital which has been issued (sold) as shares-whether their purchasers (shareholders) have paid for them or not. A firm can, at any time, issue new shares up to the full amount of authorized share capital. Also called subscribed capital, issued share capital or subscribed share capital.
Difference between authorised capital and issued capital?
Authorised capital is the maxium amount of share capital the company is allowed to issue whereas issued capital cannot exceed the authorised capital
What is the entry of bonus shares?
The entry for bonus shares involves transferring funds from the company's reserves or retained earnings to the share capital account. When bonus shares are issued, the journal entry typically debits the reserves (or retained earnings) and credits the share capital account, reflecting the increase in the number of shares outstanding without any cash transaction. This process does not affect the total equity of the company but redistributes it among a larger number of shares.
What is paid up capital?
It is Par Value of share issued
