Shares: The share capital of a company is divided into small units called shares. Shares are offered to the public for subscription. The person who purchases a time is called share holder. The share capital of the company's meant for long term requirements because it need not be paid during life time of the company. Defination: Share is defined by sec.2(46) of the companies Act as a share in the share capital of a company and includes stock except where a distinction is expressed or implied." Share carries with it certain rights and liabilities. It secures to its owner the right to receive a proportionate part of the profits and a proportionate part of the profits and a proportionate part of the assets of and obligations. A share is evidenced by a share certificate. Each share in a company having share capital is distinguished by its number. Different types of shares: Types of shares: ...
Persons interested in Accounting Disclosures:- Accounting is of primary importance to the proprietors and the managers. However, others person's such as creditors, prospective investors, employees, etc. are also interested in the Accounting information. 1) Proprietors:- A business is done with the objective of making profit. It's profitability and financial soundness are, therefore, matters of prime importance to the proprietors who have invested their money 💰 in the business. 2) Managers:- In a sole proprietary business, usually the proprietor is the manager. In case of a partnership business either some or all the partners participate in the management of the business. They therefore, act both as managers as well as owners. In case of joint stock companies, the relationship between ownership and management becomes all the more remote . In most cases the shareholders act merely as rentiers of capital and the management of the company passes in to the hands of profe...
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