Accounting

ptting (i.coM. PART-n) _ 443
Called up capital:
The portion of subscribed capital which is called up by the company from public is called called-up capital.
Paid up capital:
"The total amount received by the company out of the total called up amount is known as paid up capital.
Reserve capital:
s the portion of the subscribed capital which the company, through a special resolution, reserves to call in the event of winding up.
Primary expenses / Preliminary expenses:
These are the expenses which are incurred in the initial stages of incorporation e.g. legal fees, remuneration of promoters, cost of printing and preparing of various documents.
iderwrlting commission:
: commission which is paid to underwriter to take the risk of shares offered to the public is oown as underwriting commission.
' ir value of share:
: value which is assigned to a unit of share is called par value of share. It is also known as ncninal value or face value.
l*ok value of share:
Ihe value of share according to the books of the company is called book value of share.
Market value of share:
tte price at which buyer is willing to purchase and seller is willing to sell is called market value ire.
«ne of shares at premium:
"•"i*n a share having face value of Rs.10 is issued by the company for an amount more than b. 10, the share is said to have been issued at a premium.
ame of shares at discount:
*fen a share of Rs.10 is issued for an amount less man Rs.10 the share is said to have been issued iiicount.
fefcuitures:
DEBENTURE is a document evidencing indebtedness of the company. It is issued for long term
i Meemable debentures:
"toe debentures which are repayable at the end of a specified period. debentures:
e debentures which are never repayable during the existence of the company. These are issued by railway and such other companies.
c4* or naked debentures:
c debentures which carry no security as to payment of interest or repayment of principal
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