COMPANY ACCOUNTS I AND II
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the meaning of 'authorized share capital' in a company?
Authorized share capital is the maximum amount of share capital that a company is legally permitted to issue to shareholders, as stated in its Memorandum of Association.
What is the face value (nominal value) of a share in company accounts?
The original value printed on the share certificate.
What is 'paid-up capital' of a company?
Paid-up capital is the portion of called-up capital that has actually been received from shareholders; it equals issued capital minus calls in arrears.
What is 'subscribed share capital' in a company?
Portion of issued capital actually taken up by shareholders.
What does 'calls in arrears' represent in company accounts?
Calls in arrears is the amount due from shareholders on allotment or calls that has not yet been received by the company by the balance sheet date.
What is 'issued capital' in the context of company accounts?
Part of authorized capital offered to the public for subscription.
How is a share premium account treated in the balance sheet?
Share premium (Securities Premium Reserve) is shown under 'Reserves and Surplus' on the equity and liabilities side of the balance sheet and cannot be used for dividend distribution.
What are cumulative preference shares?
Shares where unpaid dividends accumulate and are paid later.
Video classes for this chapter
More chapters in Module B - Financial Statements and Core Banking Systems
Master the full AFM syllabus
Every chapter of Accounting and Financial Management for Bankers — videos, tests, notes and one-liner decks in one place.