CORPORATE ACCOUNTING
COMPANY ACCOUNTS
A company is a voluntary association of people who contribute money for a common purpose. A company is an artificial person and a separate legal entity. The contribution of money by people forms the capital of the company and the contributors are its members. Hence, the capital of a company is known as share capital and the contributors as shareholders. Indian Companies Act, 2013 governs all companies and provides guidelines for them to adhere to.
Meaning of Shares
A share is one unit into which the total share capital is divided. It is a fractional part of the share capital and forms the basis of ownership in the company.
For example, when a company has a share capital of ₹5,00,000 divided into 50,000 shares ...
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