CBSE Class 12 Accountancy Chapter 6 Notes on “Issue Of Shares” will be quite beneficial to you because they provide information about your domain subject and assist you in answering questions. CUET Free Accountancy Notes can help students clear up any questions they have concerning the CUET Exam 2026. Students should download the PDF of Accountancy Chapter 6 class 12 Notes since it will assist them in thoroughly grasping the concepts and allowing them to apply them during and after exams.
CBSE Class 12 Accountancy Chapter 6 Notes
CBSE Class 12 Accountancy Chapter 6 (Issue Of Shares contains the Accountancy) Revision Notes for CUET Preparation 2026 are defined and explained in the simplest way possible. Get CUET Free Resources available at our Careers Adda store.
Download Class 12 Accountancy Chapter 6 Notes PDF for Revision
Working on CBSE Class 12 Accountancy Chapter 6 Notes revision will undoubtedly help you achieve excellent marks on your exam. To perform well on the CUET 2026 exam, students must adhere to an appropriate exam strategy. Download the Class 12 Accountancy Chapter 6 Notes in PDF format from below.
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Accountancy Revision Notes for Chapter 6 – Issue Of Shares
In this chapter, Accountancy Revision Notes for CUET Commerce Preparation, the Careers Adda CUET team provides a large variety of questions, examples, and CUET Commerce practice tests. Read the brief notes below:
CUET UG Accountancy Notes for Chapter 6 Class 12
MEANING OF COMPANY
A company is an artificial person, invisible and intangible, existing only in the eyes of the law. It is an association of persons who contribute money to a common inventory to use for a common purpose. All affairs of the company are governed by the provisions of the Companies Act, 2013.
Key Features for Student Understanding:
• Body Corporate: A company is formed and registered according to the provisions of Law.
• Separate Legal Entity: It has a legal personality distinct from its members; it can own property and open bank accounts in its own name.
• Limited Liability: The liability of members is limited to the unpaid amount on the shares they hold.
• Perpetual Succession: The company continues to exist irrespective of changes in membership; the death or insolvency of members does not affect its existence.
• Common Seal: Since it is an artificial person, the common seal acts as the official signature of the company.
• Transferability of Shares: Shares of a public limited company can be transferred without the consent of other members.
• Capacity to Sue: A company can sue others and be sued in its own name.
Kinds of Companies
Companies are primarily classified based on the liability of their members or the number of their members.
1. Classification on the Basis of Liability
• Companies Limited by Shares: The liability of members is restricted to the nominal value of the shares held by them.
If the shares are fully paid, the member has zero further liability toward company debts.
• Companies Limited by Guarantee: Members undertake to contribute a specific amount to the company’s assets, but
only in the event of it being wound up.
• Unlimited Companies: There is no limit on the liability of members. If company assets are insufficient to pay debts, creditors can claim dues from the private property of the members.
2. Classification on the Basis of Number of Members
• Public Company: A company that is not a private company and is not a subsidiary of a private company.
• Private Company: A company that restricts the right to transfer shares, has a minimum of 2 members (except in OPC), and limits the total members to 200.
• One Person Company (OPC): A company with only one person as a member. It must be formed by a natural person who is an Indian citizen and resident.
o Paid-up share capital limit = 50,00,000.
o Average annual turnover limit (3 years) = 2,00,000,000.
Share Capital of a Company
As an artificial person, a company cannot generate its own capital; instead, it collects funds from several persons known as shareholders. The total amount contributed by these individuals is merged into a common “Share Capital Account”.
Categories of Share Capital. According to the sources, share capital is classified into the following stages for accounting purposes:
• Authorised (Nominal or Registered) Capital: The maximum amount of share capital a company is authorised to issue by its Memorandum of Association.
• Issued Capital: The portion of authorised capital actually offered to the public for subscription.
• Subscribed Capital: The part of the issued capital that the public has actually applied for and has been allotted by the company.
• Called-up Capital: The amount the company has requested shareholders to pay on the shares allotted to them.
o Example: share value = 10, called-up = 7. Called up capital = 1,000 × 7 = 7,000.
• Paid-up Capital: The actual amount received by the company from shareholders.
o Calculation: Paid up capital = Called up capital – Calls in arrears.
o Example: Called up = 7,000, Arrears = 500. Paid up capital = 7,000 – 500 = 6,500.
• Reserve Capital: A portion of uncalled capital reserved to be called only in the event of the company being wound up.\
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