Page 166 - ISCDEBK-12

7.2 Double Entry Book Keeping (Section A)—ISC XII

7. Equity Share Capital
It is that share capital which is not Preference Share capital.
8. Allotment of Shares
Allotment is the allocation of shares to the successful applicants by the company.
9. Allotment Money
The amount payable on allotment is called Allotment Money.
10. Authorised or Nominal Capital
‘Authorised Capital’ or ‘Nominal Capital’ means such capital as is authorised by the Memorandum
of a company to be the maximum amount of Share Capital of the company.
[Section 2(8)]
It is the maximum amount of capital which the company is, for the time being, authorised to raise.
It includes both Preference Share Capital and Equity Share Capital.
11. Issued Capital
‘Issued Capital’ means such capital as the company issues from time to time for Subscription.
[Section 2(50)]
12. Subscribed Capital
‘Subscribed Capital’ means such part of the capital which is for the time being subscribed by the
members of a company. [Section 2(86)]
13. Paid-up Share Capital or Share Capital Paid-up
‘Paid-up Share Capital’ or ‘Share Capital Paid-up’ means such aggregate of money credited and
paid-up as is equivalent to the amount received as paid-up in respect of shares issued and also
includes any amount credited as paid-up in respect of shares of a company, but does not include
any other amount received in respect of such shares, by whatever name called.
[Section 2(64)]
14. Subscribed and Fully Paid-up
It is the amount of share capital issued by a company that is subscribed on which the company
has called and also received entire nominal (face) value of the share.
15. Subscribed but not Fully Paid-up
It is the amount of share capital issued by a company that is subscribed but the company has not
received entire nominal (face) value of the share.
16. Reserve Capital
It is that part of the authorised capital that a company resolves to call in the event of its winding up.
17. Capital Reserve
It is a reserve created out of capital profits.
18. Issue of Shares for Cash
It means the consideration for shares is received through cash/cheque or any other banking instrument
against the shares.
19. Issue of Shares for Consideration Other than Cash
It means the consideration for shares is received otherwise than through cash/cheque or any other
banking instrument but they have been issued for assets purchased or services taken.
20. Par Value
Par value means the Nominal or Face value of a share.
21. Issue of Shares at Par
It means the issue price and nominal (face) value of the share is same.