{"id":85967,"date":"2021-10-07T13:51:00","date_gmt":"2021-10-07T08:21:00","guid":{"rendered":"https:\/\/www.kopykitab.com\/blog\/?p=85967"},"modified":"2021-10-11T21:03:39","modified_gmt":"2021-10-11T15:33:39","slug":"ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8","status":"publish","type":"post","link":"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8\/","title":{"rendered":"TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 &#8211; Accounting for Share Capital 2021-22"},"content":{"rendered":"\n<p><img class=\"alignnone size-full wp-image-136244\" src=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/10\/Chapter-8-Accounting-of-Share-Capital.jpg\" alt=\"TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 - Accounting for Share Capital\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/10\/Chapter-8-Accounting-of-Share-Capital.jpg 1200w, https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/10\/Chapter-8-Accounting-of-Share-Capital-768x432.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><span data-preserver-spaces=\"true\"><strong>TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8: <\/strong>TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 PDF can be downloaded from the links provided below. Now, at the time of preparation you don&#8217;t need to rush over the pages in order to download the Class 12 Chapter 8 Accountancy Vol 2 Solutions. Just with a single click you have detailed solutions with you.<\/span><\/p>\n<ul>\n<li>Read More: <a href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions\/\" target=\"_blank\" rel=\"noopener\">TS Grewal Class 12 Solutions\u00a0<\/a><\/li>\n<\/ul>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_47_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69db72c313e02\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69db72c313e02\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-visibility-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8\/#download-ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8-pdf\" title=\"Download TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 PDF\">Download TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 PDF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8\/#ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8-%e2%80%93-detailed-topics\" title=\"TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 \u2013 Detailed Topics\u00a0\u00a0\">TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 \u2013 Detailed Topics\u00a0\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8\/#ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8-%e2%80%93-sample-questions\" title=\"TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 &#8211; Sample Questions\u00a0\u00a0\">TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 &#8211; Sample Questions\u00a0\u00a0<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8\/#faq-ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8-%e2%80%93-accounting-for-share-capital\" title=\"FAQ: TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 &#8211; Accounting for Share Capital\">FAQ: TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 &#8211; Accounting for Share Capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8\/#how-do-you-record-share-capital-in-accounting\" title=\"How do you record share capital in accounting?\">How do you record share capital in accounting?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8\/#what-are-the-types-of-share-capital\" title=\"What are the types of share capital?\">What are the types of share capital?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8\/#what-are-the-two-methods-of-accounting-for-share-capital\" title=\"What are the two methods of accounting for share capital?\">What are the two methods of accounting for share capital?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8\/#what-are-the-advantages-of-share-capital\" title=\"What are the advantages of share capital?\">What are the advantages of share capital?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"download-ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8-pdf\"><\/span><span data-preserver-spaces=\"true\">Download TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 PDF<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/04\/TS-Grewal-Class-12-Accountancy-Solutions-Vol-2-Chapter-8.pdf\">TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8<\/a><\/p>\n<div id=\"example1\" style=\"text-align: justify;\">\u00a0<\/div>\n<p style=\"text-align: justify;\"><style>\n.pdfobject-container { height: 500px;}<br \/>\n.pdfobject { border: 1px solid #666; }<br \/>\n<\/style><\/p>\n<p style=\"text-align: justify;\"><script src=\"https:\/\/www.kopykitab.com\/_utility\/js\/pdfobject.min.js\"><\/script><br \/><script>PDFObject.embed(\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/04\/TS-Grewal-Class-12-Accountancy-Solutions-Vol-2-Chapter-8.pdf\", \"#example1\");<\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8-%e2%80%93-detailed-topics\"><\/span><span data-preserver-spaces=\"true\">TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 \u2013 Detailed Topics\u00a0\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">A joint-stock company is an artificial person, created by law, having a separate entity distinct from its members with perpetual succession and a common seal.\u00a0\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Characteristics or features of Company:-\u00a0\u00a0<\/span><\/p>\n<ol>\n<li><span data-preserver-spaces=\"true\">Artificial person\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Voluntary association\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Created by law\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Capital divisible into transferable shares\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Limited liability\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Perpetual succession\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Common seal\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The separate legal entity from its members\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">May sue or be sued\u00a0\u00a0<\/span><\/li>\n<\/ol>\n<p><span data-preserver-spaces=\"true\">Kinds of Companies:-\u00a0\u00a0<\/span><\/p>\n<ol>\n<li><span data-preserver-spaces=\"true\">Private Company\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Public company\u00a0\u00a0<\/span><\/li>\n<\/ol>\n<p><span data-preserver-spaces=\"true\">Types Share of shares:-\u00a0\u00a0<\/span><\/p>\n<ol>\n<li><span data-preserver-spaces=\"true\">Preference share\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Equity share\u00a0\u00a0<\/span><\/li>\n<\/ol>\n<p><span data-preserver-spaces=\"true\">Kinds of Share Capital:-\u00a0\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Share capital is that part of the capital of a company, which is represented by the total Nominal value of shares, which it has issued.\u00a0\u00a0<\/span><\/p>\n<ol>\n<li><span data-preserver-spaces=\"true\">Authorized Share Capital\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Issued capital\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Subscribed and fully paid-up shares\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Subscribed but not fully paid-up shares\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Reserve Capital\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Capital Reserve\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Minimum subscription\u00a0\u00a0<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8-%e2%80%93-sample-questions\"><\/span><span data-preserver-spaces=\"true\">TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 &#8211; Sample Questions\u00a0\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">In this section, the students will get TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 Sample Questions along with answers.\u00a0\u00a0<\/span><\/p>\n<p><strong>Q1. Define Company. What are the essential characteristics of a company?\u00a0\u00a0<\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">A. According to section 2(20) of the Companies Act, 2013, \u201cCompanies means a company incorporated under this Act or any previous Companies Act.\u201d A company is an artificial person created by the process of law, having a separate entity with perpetual succession. It may or may not have a common seal. The essential characteristics of a company are:-\u00a0\u00a0<\/span><\/p>\n<ol>\n<li><span data-preserver-spaces=\"true\">Incorporation- A company is an official person created through the process of law, i.e. the companies act either under the present Companies Act, 2013 or under any previous Companies Act.\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Separate Legal Entity:- A company is an artificial person having a legal entity separate from its Shareholders.\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Artificial Person:- In the eyes of law it is an artificial person. It can own property, enter into contact, conduct business, sue, or be sued for its debts and actions.\u00a0\u00a0<\/span><\/li>\n<\/ol>\n<p><span data-preserver-spaces=\"true\"><strong>Q2. Explain the term Preference Share. What is meant by Cumulative Preference Share?\u00a0<\/strong>\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">A. Preference share are those shares that carry the following two rights in preference to Equity shares:\u00a0<\/span><\/p>\n<ol>\n<li><span data-preserver-spaces=\"true\">As regards divided, they have a preferential right of dividend to be paid as a fixed amount or an amount calculated at a fixed rate, which may either be free of or subject to income tax, and\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">As regards capital, in the event of winding up, they have a preferential right to be repaid the capital before it is repaired to Equity shareholders.\u00a0\u00a0<\/span><\/li>\n<\/ol>\n<p><span data-preserver-spaces=\"true\">Cumulative Preference Share is those Preference share that carries the right to receive arrears of dividend before the dividend is paid to the Equity Shareholders.\u00a0\u00a0<\/span><\/p>\n<p><strong>Q3. Give the meaning of Forfeiture of Shares. At the time of Forfeiture of shares, with what amount the Forfeited Share Account is credited?\u00a0<\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">A. If a Shareholder fails to pay any call made on him, which is due on shares, the company may cancel his shares. The cancellation of shares for non-payment of non-payment of amount due on shares is known as Forfeiture of shares.\u00a0\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Forfeited shares become the property of the company and the company can reissue them at par, at a premium, or at a discount. However, the discount cannot exceed the amount forfeited.\u00a0\u00a0<\/span><\/p>\n<p>We have included complete information regarding\u00a0<span data-preserver-spaces=\"true\"><a href=\"http:\/\/www.cbse.gov.in\/\" target=\"_blank\" rel=\"noopener\">CBSE<\/a> TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 &#8211; Accounting for Share Capital. If you have any questions feel free to ask in the comment section.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"faq-ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8-%e2%80%93-accounting-for-share-capital\"><\/span>FAQ: TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 &#8211; Accounting for Share Capital<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1633594717860\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"how-do-you-record-share-capital-in-accounting\"><\/span>How do you record share capital in accounting?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Ordinary Share Capital represents the equity of a company and therefore its issuance is recorded as\u00a0part of the equity reserves in the balance sheet.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1633594726539\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-are-the-types-of-share-capital\"><\/span>What are the types of share capital?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The two types of share capital are\u00a0common stock and preferred stock. Companies that issue ownership shares in exchange for capital are called joint stock companies.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1633594731328\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-are-the-two-methods-of-accounting-for-share-capital\"><\/span>What are the two methods of accounting for share capital?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>There are two methods of accounting for treasury stock transactions, namely:\u00a0(1) par or stated value method and (2) cost method.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1633594732246\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-are-the-advantages-of-share-capital\"><\/span>What are the advantages of share capital?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Advantages of share capital include:\u00a0Share capital is a source of permanent capital \u2013 Shareholders cannot have a refund on their shares. Instead, if they want to sell their shares, they must find someone else to sell them to.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8: TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 PDF can be downloaded from the links provided below. Now, at the time of preparation you don&#8217;t need to rush over the pages in order to download the Class 12 Chapter 8 Accountancy Vol 2 &#8230; <a title=\"TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 &#8211; Accounting for Share Capital 2021-22\" class=\"read-more\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-8\/\" aria-label=\"More on TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 8 &#8211; Accounting for Share Capital 2021-22\">Read more<\/a><\/p>\n","protected":false},"author":244,"featured_media":136244,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":""},"categories":[2985,73693,73712,73410],"tags":[75091,3429,75094],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/85967"}],"collection":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/users\/244"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/comments?post=85967"}],"version-history":[{"count":5,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/85967\/revisions"}],"predecessor-version":[{"id":137640,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/85967\/revisions\/137640"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media\/136244"}],"wp:attachment":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media?parent=85967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/categories?post=85967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/tags?post=85967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}