Page 344 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Unit 14: Preparation of Final Accounts

(ii) Shares, which are issued other than cash for different consideration and issued, Notes
as bonus shares must also be given.
(iii) Shares on which calls are in arrear must also be shown by way of deduction
from called up capital.
(iv) Shares which are forfeited on account of non-payment must be shown
separately.
(v) If forfeited shares are re-issued in full or in part, in case of profit must be
transferred to capital reserve account only.

Notes There are two types of share capital – (i) Equity share capital, and (ii) Preference
share capital.
2. Reserves and Surplus: As per Companies Act, 1956 the following are the Reserves and
Surplus:
(a) Capital Reserves
(b) Capital Redemption Reserve Account
(c) Securities Premium Account

(d) Other Reserves such as – General Reserve, Reserve for depreciation, etc.
(e) Surplus – The net profit, as per profit and loss account, is to be given.
(f) Proposed Addition to Reserves
(g) Sinking Fund

Borrowers Capital Fund: There are the following types of loan capital:
1. Secured loans: If any security is given by way of a mortgage or charge on all or any of its
property, the loan is termed as secured loan and shown in the following order:

(i) Debentures: Types of debentures, redeemable and non-redeemable etc.
(ii) Loans and Advances from Banks
(iii) Loans and Advances from subsidiary company
(iv) Other Loans and Advances if any

2. Unsecured loans: If a company borrows loans without giving any security, then such loans
are termed as unsecured loans. Following are:
(i) Fixed deposits

(ii) Loans and Advances from Subsidiaries
(iii) Loans and Advances from the banks
(iv) Loans and Advances from others
3. Current Liabilities and Provisions:

(a) Current Liabilities: Which are payable within one year are shown in this such as
 Acceptances
 Sundry creditors

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