Test: Company Accounts Issue Of Shares - 1

Share Application or share allotment or Share capital A/c all are personal accounts as they represent money from the shareholders and when money is due, these are to be debited because of the rule "Debit the receiver".

Usually, general partnerships will dissolve if any partner withdraws, becomes deceased, or otherwise becomes unable to continue their duties as a partner. Other circumstances that may lead to partnership dissolution may include: Loss of profits or declaration of bankruptcy. Illegal activities or violations.

As per the Companies Act, 2013, (new guidelines) a company cannot issue its shares at discount. Company can issue its shares at par and premium.

Short term loans are called such because of how quickly the loan needs to be paid off. In most cases, it must be paid off within six months to a year and a half.

As per the section 52 of the Companies Act, 2013 restricts the use of securities premium received.
It can be used for the following purposes:
(i) To write off the preliminary expenses.
(ii) To issue fully paid bonus shares to promoters.
(iii) To purchase own shares.
(iv) To write off the expenses.

 A Private Company may have 2 directors to manage the affairs of the company, whereas a Public Company must have at least 3 directors.

Preference Shares are those shares on dividend to be paid as fixed amount. These shares are convertible and can be redeemed.

• Dividend is paid to the shareholders.
• Interest is paid to the Debenture holders.

All accounts which are prepared for the calculation of profit or loss are nominal accounts. All assets accounts are real and liabilities are personal accounts.