Accounting for share Capital Test - 2

Payment of dividend

As per the Companies Act, 2013, when Table F is followed by the company, rate of interest on calls in arrear should be 10% p.a.When any shareholder fails to pay the amount due on allotment or on any of the calls, such amount is known as 'Calls-in-Arrears'/'Unpaid Calls'. Interest at a rate 10% shall have to be paid on Calls-in-arrears for the period from the day fixed for payment and the time of actual payment thereon.

As per the Companies Act, 2013, (new guidelines) a company cannot issue its shares at discount. Company can issue its shares at par and premium.

Minimum paid up capital of a private company is 1,00,000. A private company cannot transfer its shares and all private companies’ ends with the words ‘Private Limited’.

Secured

A Public company should have at least 3 Directors and a private company must have at least 2 Directors.

Preference Shares are those shares on dividend to be paid as fixed amount. These shares are convertible and can be redeemed.

Issue as collateral securities

All accounts which are prepared for the calculation of profit or loss are nominal accounts. All assets accounts are real and liabilities are personal accounts.

There are two types of preference shares in context to the redemption i.e. Redeemable and Non-redeemable preference shares. As per the Companies Act, 2013, companies cannot issue Irredeemable Preference Shares. Redeemable preference shares are those which can be redeemed by the company.