Ch 6 · Company Accounts — Issue of Shares

5 concept points · 4 formulas · 4 exam-critical points.

🧮 Formula sheet

1. Securities Premium credited only on receipt (per ICAI practice: on allotment).
2. Forfeiture Credit = Amount called − Amount unpaid (excluding premium not received)
3. Capital Reserve = Forfeited Balance after re-issue
4. Pro-rata Allotment Ratio = Shares applied : Shares allotted