In this article we will discuss about the accounting entries for call-in-arrears and calls-in-advance, explained with the help of an illustration. Calls-In-Arrears: If any amount, called in respect of a share, is not paid before or on the date fixed for payment thereof, such amount which is not paid, is called "CALLS-IN-ARREARS". Amount may be called up by the Company [...]
In this article we will discuss about the accounting entries for capital redemption reserve, explained with the help of suitable illustrations. Accounting Entries for Capital Redemption Reserve: Minimum Fresh Issue of Shares: Sometimes, the use of mathematical equation becomes necessary to find out the number of new shares to be issued. At the time of redemption of preference shares, some [...]
The below mentioned article provides an overview on the Entries in the Books of Purchasing Company. Purchase of Business: A company may start an entirely new business or it may start with buying an existing business, either that of a partnership or of a limited company. Frequently, later in its life a company buys businesses. The purchase price or purchase [...]