In this article we will discuss about the accounting treatment for rights issue of shares, explained with the help of suitable illustrations. Sec. 81 of the Companies Act, 1956 provides that where a Public Company decides to increase its subscribed capital by issue of additional shares, at any time after the expiry of two years of its formation or one [...]
In this article we will discuss about the accounting treatment for reissue of forfeited shares, explained with the help of suitable illustrations. Forfeited shares may either be cancelled or reissued. Such shares once forfeited can be reissued to any person within reasonable time and at reasonable price. They can be reissued at par, at premium or at discount. However, the [...]
In this article we will discuss about the accounting entries relating to debenture trustees, explained with the help of an illustration. Generally, to look after the interest of the debenture-holders, certain persons are elected as trustees by the debenture-holders. Alternatively, the names of trustees may be mentioned in the prospectus inviting subscription for debentures of the company. The guide-lines issued [...]