51. Capital
receipts: capital receipts may be defined as “non-recurring receipts from the
owner of the business or lender of the money crating a liability to either of
them.
52. Revenue receipts: Revenue receipts may defined
as “A recurring receipts against sale of goods in the normal course of business
and which generally the result of the trading activities”.
53. Meaning of Company: A company is an association
of many persons who contribute money or money’s worth to common stock and
employs it for a common purpose. The common stock so contributed is denoted in
money and is the capital of the company.
54. Types of a company:
1. Statutory companies
2. government company
3. foreign company
4. Registered companies:
a. Companies limited by shares
b. Companies limited by guarantee
c. Unlimited companies
D. private company
E. public company
55. Private company: A private co. is which by its
AOA:
Restricts the right of the
members to transfer of shares Limits the no. of members 50. Prohibits any Invitation to the
public to subscribe for its shares or debentures.
56. Public company: A company, the articles of
association of which does not contain the requisite restrictions to make it a
private limited company, is called a public company..
57. Characteristics of a company:
Voluntary association Separate legal entity Free transfer of shares Limited liability Common seal Perpetual existence.
58. Formation of company:
Promotion Incorporation Commencement of business
59. Equity share capital: The total sum of equity
shares is called equity share capital.
60. Authorized share capital: it is the maximum
amount of the share capital which a company can raise for the time being.
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