Doubts

SOLUTION No. Under Section 53 of the Companies Act, 2013, a Company cannot issue shares at discount.

SOLUTION Reserve Capital is created out of uncalled capital whereas capital reserve is created out of capital profits.

SOLUTION Called-up CapitalPaid-up CapitalIt is that part of subscribed capital which has been called for payment.  It is that part of called-up capital which has been actually received from the…

SOLUTION Issue Share CapitalSubscribed Share CapitalIt is that part of the authorised capital of a company which is offered to the public for subscription.  It is that part of the…

SOLUTION Authorised capital refers to the maximum capital for which a company is authorised to issue whereas issued capital is that part of authorised capital which is offered for subscription.

SOLUTION When the entire face value of a share is called by the company and is also paid by the shareholder, it is said to be subscribed and fully paid-up…

SOLUTION Reserve Capital.

SOLUTION Sometimes company issues fully paid shares to the vendor from whom it buys assets. Such type of issue of shares to the vendor is called ‘Issue of shares for…

SOLUTION Balance left in share forfeited account after the reissue of such shares represents a capital profit, which is transferred to 'Capital Reserve Account’.