Accountancy

SOLUTION Calls-in-arrears refers to the amount which has not been paid by the shareholder on allotment or calls made by the Company till the last day fixed for the payment…

SOLUTION Minimum subscription is the minimum amount which must be subscribed by the public. According to Companies Act minimum subscription has been fixed at 90% of the issued amount. If…

SOLUTION When issue is over-subscribed, the company will have to allot shares on Pro-rata basis It means that smaller number of shares are allotted to each applicant according to the…

SOLUTION Shares are said to be over-subscribed when the number of shares applied for is more than the number of shares offered to the public for subscription. For example, in…

SOLUTION  (i) For writing off the preliminary expenses or underwriting commission Allowed on issue of shares or debentures of the Company; (ii) For issuing fully paid bonus shares to the…

SOLUTION It appears on the equity and liabilities side of the Balance Sheet under Reserves and Surplus'

SOLUTION It is shown under the head "Other Current / Non-Current Assets" depending on whether the amount will be amortized in the next 12 months or thereafter. Amount to be…

SOLUTION Preliminary expenses are not shown in the Balance Sheet. As per AS-26. They are written off in the same year in which they are incurred.

SOLUTION Shares are said to have been issued at par when an applicant has to pay a sum equal to the face value of the share.