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EQUITY SHARES Equity Shares are those shares which are paid dividends only when profits are left after the preference shareholders have been paid fixed rate of dividends. In other words, there will be no fixed rate of dividend on the equity shares. Equity shareholders have voting rights and control of the affairs of the company….
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DIFFERENT TYPES OF PREFERENCE SHARES PREFERENCE SHARES Preference shares are those which carry the following two preferential rights: They have a right to receive dividend at a fixed rate before any dividend is paid on the equity shares. When the company is wound up, they have a right to the return of capital before that…
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MEANING Sweat Equity Shares are the shares issued by the company to its employees or directors at a discount or for consideration other than cash. These shares are issued as a reward to the directors and shareholders. ACCORDING TO COMPANIES ACT 2013 “Sweat equity shares” means such equity shares, which are issued by a Company…
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TYPES OF COMPANIES Company is an artificial person created by the law for some common purpose where the capital is divisible into parts known as shares with perpetual succession and common seal. The various types of companies are as follows: ON THE BASIS OF FORMATION On the basis of formation, the companies are of following…
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WHAT IS COMPANY Joint Stock Company is an artificial person created by the law for some common purpose where the capital is divisible into parts known as shares with perpetual succession and common seal. ACCORDING TO PROF. HANEY “A company is an artificial person created by law, having separate entity with the perpetual succession and…
RECEIPTS AND PAYMENTS ACCOUNT Receipts and Payments Account records all the cash receipts and cash payments of non-profit organisations. It is a real account. It is prepared at the end of the year and records all the transactions whether it belongs to current, future or past years. All the capital and revenue nature items are…
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NON- PROFIT ORGANISATION Non Profit Organisation is a kind of organisation which is set up to promote the social welfare, cultural, educational, professional or religious objectives. These organisations are formed not to earn profit but to render their services to the society for the upliftment of the various sections of the society. It is a…
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WORKMEN COMPENSATION RESERVE TREATMENT ON DISSOLUTION Workmen Compensation Reserve is a reserve created out of firm’s profits to meet possible liability to pay compensation to employees, if it arises. It means, a claim may or may not arise. It also means that claim may be higher than amount of reserve. This Reserve represented by compensation…
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MEANING Realisation Account is a nominal account which is prepared at the time of dissolution of firm. It is prepared to find out the profit or loss realized by the firm on its closing or shutting down. Being a nominal account, it is credited with all the incomes and debited with all the expenses. Firstly,…
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MEANING Debts are the loan for the firm or any individual. It is the claim the third party carries against any firm or individual. Private Debts are the debts which a partner owes in his personal capacity. The respective partner is liable to discharge these debts personally or from his own sources. FIRM’ S DEBTS…
