Professional Documents
Culture Documents
CAPITAL
CONSOLIDATE AND SUBDIVISION OF SHARE
Increase
capital
Alteration
Change
Reduce
Issue
Consolidate
Convert
Sub-divide
Cancel
Reduce
ofof
the
share
ofshare
share
unsubscribed
period-up
new
bonus
shares
form
shares
capital
shares
share
capital
ofshare
into
share
share
stock
shares
capital
capital
& stock into share
Example of consolidation of
shares
50,000 equity shares of Rs.10
each are consolidated into
5,000 equity shares of 100
Rs. Each. Pass entry.
Equity share capital A/c (Rs. 10)
Dr.
5,00,000
To equity share capital account ( Rs.100 )
5,00,000
SUB-DIVISION OF
SHARES
Equity share
10,00,000*3/
5
=6,00,000
Pref. share
capital
10,00,000*2/
5
=4,00,000
Equity share
80,000*7/10
Pref. share
80,000*3/10
=56,00
=24,00
Equity share
capital
50,00,000*6/1
0
30,00,000 Rs.
Prf. Share
capital
50,00,000*4/
10
20,00,000 Rs.
CONVERSION OF SHARES IN TO
Company can STOCK
convert its share
into
stock
but
before
that
company have to pass resolution
of it in company general meeting.
Company can make conversion of
its share into stock if article of
company permit it.
Company have to pass entry for
conversion into stock as under,
Dr.
Equity Stock
Discoun
t on
issue of
stock
Equity share
Equity share
Premiu
m on
issue
of
stock
Equity Stock