61. Issued capital: It is that part of the
authorized capital which has been allotted to the public for subscriptions.
62. Subscribed capital: it is the part of the
issued capital which has been allotted to the public
63. Called up capital: It has been portion of the
subscribed capital which has been called up by the company.
64. Paid up capital: It is the portion of the
called up capital against which payment has been received.
65. Debentures: Debenture is a certificate issued
by a company under its seal acknowledging a debt due by it to its holder.
66. Cash profit: cash profit is the profit it is
occurred from the cash sales.
67. Deemed public Ltd. Company: A private company
is a subsidiary company to public company it satisfies the following
terms/conditions Sec 3(1)3:
1. having minimum share capital 5
lakhs
2. accepting investments from the
public
3. no restriction of the
transferable of shares
4. No restriction of no. of members.
5. accepting deposits from the
investors
68. Secret reserves: secret reserves are reserves
the existence of which does not appear on the face of balance sheet. In such a
situation, net assets position of the business is stronger than that disclosed
by the balance sheet.
These reserves are crated
by:
1. Excessive dep.of an asset,
excessive over-valuation of a liability.
2. Complete elimination of an asset,
or under valuation of an asset.
69. Provision: provision usually means any amount
written off or retained by way of providing depreciation, renewals or
diminutions in the value of assets or retained by way of providing for any
known liability of which the amount can not be determined with substantial
accuracy.
70. Reserve: The provision in excess of the amount
considered necessary for the purpose it was originally made is also considered
as reserve
Provision is charge against
profits while reserves is an
appropriation of profits Creation of reserve increase
proprietor’s fund while creation of provisions decreases his funds in the
business.
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