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Authorised capital
Accountancy
(1)For example a company has authorised capital of rupees 50000 and its face value of each shares is 10 rs and has 5000 equity shares . now if a company wants to rise money from public ...including face value of rs 10 and premium rs 15 = 35â?¹ now can co. rise above 50000rs because 35Ã?5000=175000. (2) Is security premium included in authorised capital or excluded.
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Thread Starter
Shreesha .T.uDivide share capital i mean divide from face value
I didn't understand exactly what you meant, but I sent you this attachment so that it might clarify your doubt..,
By the way your calculation itself is wrong, if the face value is Rs.10 and premium is Rs.15 it becomes Rs.25 then the total amount collected from issuing will be Rs.1,25,000. Now the amount which is collected as face value (Rs.10 for 5000 shares) Rs.50000, will be credited to Share capital a/c. And the remaining will be transferred to securities premium (Rs15 for 5000 shares) Rs.75,000; as notified by the company.
Pundareekaksha Guptha P
By the way your calculation itself is wrong, if the face value is Rs.10 and premium is Rs.15 it becomes Rs.25 then the total amount collected from issuing will be Rs.1,25,000. Now the amount which is collected as face value (Rs.10 for 5000 shares) Rs.50000, will be credited to Share capital a/c. And the remaining will be transferred to securities premium (Rs15 for 5000 shares) Rs.75,000; as notified by the company.
Thanks for correcting my mistake. My question was is security premium included in authorised capital or excluded . in above example should we divide 25 rs from authorised capital and issue share or divide share capital and issue share
Thread Starter
Shreesha .T.uThanks for correcting my mistake. My question was is security premium included in authorised capital or excluded . in above example should we divide 25 rs from authorised capital and issue share or divide share capital and issue share
Divide share capital i mean divide from face value
Thread Starter
Shreesha .T.uThanks for correcting my mistake. My question was is security premium included in authorised capital or excluded . in above example should we divide 25 rs from authorised capital and issue share or divide share capital and issue share
It will not be included in share capital.
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