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Class 12 Accountancy TS Grewal Solutions Volume 2 Chapter 8 - Accounting for Share Capital

Q: 3. What are the different kinds of a company?

There are five types of companies:Companies Restricted by Shares: In this instance, the members' liability is limited to the nominal value of the shares they own.Companies Restricted by Guarantee: In this instance, the members' responsibility is limited to the amount of the guarantee they provide if the company is wound up.Unlimited Firms: These companies are defined as those that have no limit on their members' liability.Public Company: A corporation that is not a private company is referred to as a public company.Private Company: A private company is defined as one whose articles of association state:Limits the power to transfer the company's shares; Limits the number of members to fifty; Prohibits any public solicitation to subscribe for the company's shares or debentures.

Commerce

Class 12 Accountancy TS Grewal Solutions Volume 2 Chapter 8 - Accounting for Share Capital

Free PDF Download for Class 12 Solutions Available on Vedantu

TS Grewal Class 12 Chapter 8 Solutions provides complete knowledge regarding the share capital for commerce students. As it is the main part of every business, students need to learn its meaning and importance and how to enter the capital amount in the subsidiary book. Students can also learn how to collect capital from shareholders. TS Grewal Solutions are prepared by several experienced scholars and include solved questions to understand and test papers to practice.

Share Capital and Its Significance

TS Grewal Class 12 Chapter 8 Solutions 2024-25 focuses on the concept of share Capital to be explained to the students. Students can understand that the share capital is an amount that can be raised from the public or by private equity financing to use as an investment for the expansion of the company. With the help of the solved examples, the professors explain the significance of shared capital to the students. Share capital is a key to taking away the growth of a company to higher, by distributing equal common shares through public offerings.

Along with the definition and the meaning of share capital, students should learn different types of share capitals and the methods to collect them. Class 12 Accountancy Chapter 8 TS Grewal solutions explain that the shared capital is of different types such as authorized capital, paid-up capital, free share capital, etc., and many more. It is also important to learn various types and the difference between them so that the students can be aware of mentioning it on the right side of the balance sheet. TS Grewal Solutions have explained each kind of share with good examples, along with a solved question.

Issued Share Capital with Example

Class 12 Accountancy Chapter 8 includes examples for all kinds of share capitals which make it simpler for the students to study different kinds of share capital. Students can understand that if we consider a share capital, then the explanation and meaning is as follows,

The amount of share Capital that is issued to the public can be termed as issued share capital, for example, if the company issues 10,000 shares with a face value of 1 rupee then the issue share capital is 10,000. If the saying company issues another 10,000 shares with your face value of 1 rupee, but the market value increases to 2 rupees even though the issued share capital is 10,000 only.

Key Takeaways of TS Grewal Solutions

Students may gain many positive outcomes using TS Grewal and solutions of Class 12 Chapter 8 in Accountancy Volume 2. These are as follows,

It is an advanced form of the CBSE syllabus.
It acts as an anytime material to the commerce students.
The availability of multiple question answers and solved questions helps the students to improve their scores.
TS Grewal Solutions PDF helps to assist the students to revise during the time of examinations.

Conclusion

Hence, the TS Grewal Class 12 Chapter 8 Solutions provided by Vedantu includes all the necessary tips for the students to get a better score and to have sound knowledge for all the important topics covered in Accountancy Class 12 Chapter 8 So students should download the TS Grewal Class 12 Chapter 8 Solutions PDF given on this page to learn and revise all the topics of Chapter 8.

Why Should the Students Study from TS Grewal Solutions Class 12?

The solutions of TS Grewal are simple and easy to understand. It makes accounting much easier and more interesting for students.
Students can put their accounting skills to the test with these answers. If they run into any difficulties, they can refer to the solution before attempting to solve the problem again.
These solutions are created as per the most recent CBSE syllabus and guidelines.
It contains in-depth solutions that will help students improve their accounting expertise. Even the most difficult questions are answered in a clear and simple manner.
It's organised chapter wise and offers answers to all of the questions in the TS Grewal textbook.
These solutions are one of the best resources for preparing for the Class 12 board exam. It contains a variety of questions that can be used both in daily study sessions and during a review.
It is easily accessible and completely free.

Important Topics Links

Some of the important topics links related to this chapter are listed below.

Commerce Related Links

FAQs on Class 12 Accountancy TS Grewal Solutions Volume 2 Chapter 8 - Accounting for Share Capital

1. What are the features of a company?

The Indian Companies Act of 1956 defines the characteristics of a corporation or corporate body. A business has its distinct qualities and characteristics. Let's get acquainted with the characteristics of a corporation, the many types of companies, and the firm's share capital.

"A company is a legal entity with a separate legal entity, eternal succession, and a common seal created by law." -Haney, L.H.
"A company is an artificial being that is intangible, invisible and only exists in the mind of the law."- Marshall, Justice.
"It is a group of people that pool their money or money's worth into a common stock and use it for a common goal." -Supreme Court Justice Lindley.

2. What is meant by forfeiture of shares?

When an applicant receives shares, he and the corporation automatically enter into a contract. The applicant is thereafter obligated to pay the allocation money as well as all call money until the shares are fully paid up. However, if a shareholder fails to pay any of the calls (one or more) on the board of directors' authority, the shares may be forfeited. The term ‘forfeiture’ basically means cancellation. Notice to the shareholder must be made before any forfeiture can take place. The shareholder must be given at least 14 days to make the required payment, otherwise, his shares would be forfeited. If the shareholder does not pay after receiving such notice, the shares will be canceled. To know more about share capital and forfeiture of shares, click here.

3. What are the different kinds of a company?

There are five types of companies:

Companies Restricted by Shares: In this instance, the members' liability is limited to the nominal value of the shares they own.

Companies Restricted by Guarantee: In this instance, the members' responsibility is limited to the amount of the guarantee they provide if the company is wound up.

Unlimited Firms: These companies are defined as those that have no limit on their members' liability.

Public Company: A corporation that is not a private company is referred to as a public company.

Private Company: A private company is defined as one whose articles of association state:

Limits the power to transfer the company's shares;
Limits the number of members to fifty;
Prohibits any public solicitation to subscribe for the company's shares or debentures.

4. What are the classes of share?

A corporation can issue two categories of shares under the Indian Companies Act, 1956:

Equity Share and Preference Share (formerly known as ordinary share)

Preference Share: A preference share, according to Section 85 of the Companies Act, 1956, satisfies the following conditions: (a) It carries or will carry, on the winding-up of the company, the right to the repayment of capital before anything is paid to the creditors; and (b) It carries or will carry, on the winding-up of the company, the right to the repayment of capital before anything is paid to the creditors.
Equity Share: An equity share is not a preference share, as defined by Section 85 of the Companies Act, 1956. This share has no preferential rights, or in other words, an equity share is entitled to dividends and capital return after preference share claims have been satisfied.

1. Section 86 (a) allows for the following types of equity share capital:
2. With voting rights
3. Differential voting rights, dividend rights, or other rights are according to such rules and conditions as may be imposed.

5. How can I prepare for accounting for share capital Class 12?

It is important to know about the concepts of share capital and company to do well in this topic. It is also important to have a strong foundation to ace this topic. Knowing in detail about the kind of shares, company, issue of a share, allotment of shares. Learn about the practical uses of learning this topic, as it will help you relate to the topic more and in turn, apply this in real life more. Practice this topic with sample papers and solve the problems. You have access to free study materials available at the Vedantu website and app.