Company accounts | Lecture 6 | under subscription | Hindi / urdu | Ezair Commercia

A company is a voluntary association of people who contribute money for a common purpose. A company is an artificial person and a separate legal entity. Let us now understand the basic concepts of company accounts. The contribution of money by people forms the capital of the company and the contributors are its members. Hence, the capital of a company is known as share capital and the contributors as shareholders. Indian Companies Act, 2013 governs all companies and provides guidelines for them to adhere to. Section 2(84) of the Companies Act, 2013 defines share as a share in the share capital of a company and it includes stock. The share capital of a company is divided into units of smaller denominations. Each such unit is called a Share. It entitles the holder to ownership in the company. Issue of Shares for Cash Issue of Shares for Consideration Under and Over Subscription Calls-in-Advance Calls-in-Arrears Issue of Shares to Promoters Forfeiture of Shares Reissue of Shares Issue of Debentures Issue of Debentures as Security Issue of Preference Shares Capital Redemption Reserve Account As per Section 43 of the Companies Act, 2013 Share Capital of a company can be of two types: Equity Share Capital Preference Share Capital For more videos or notes contact us on 9622701070 or you can text us on our social media as well ‎@EzairCommercia