0 5 per share has been credited to the share premium account. 1 per share whereas the cash proceeds over and above the nominal value amounting 500 000 i e. The total amount recognized in the share capital account is 1 million which equates to the nominal value of the issued shares i e.
In a strict accounting sense share capital is the nominal value of issued shares. Share capital may also denote the number and types of shares that compose a corporation s share structure. A corporation s share capital or capital stock in us english is the portion of a corporation s equity that has been obtained by the issue of shares in the corporation to a shareholder usually for cash.
So at least 90 of the issued capital must receive subscriptions or the offer will be said to have failed. This minimum subscription is generally set by the board of directors but it cannot be less than 90 of the issued capital. This is a minimum amount that must be raised when the shares are offered to the public during the issue of shares.
If company has issued 100 000 equity shares of face value 1 per share and the market value of each share is 2 even then the issued share capital of such a company will be 100 000 not 200 000. The value of issued capital presented in the financial statements is simply the number of issued shares multiplied by the face value of each share. The total is listed in the company s balance sheet.
Share capital is the money a company raises by issuing shares of common or preferred stock. Subscribed share capital is the value of shared investors have promised to buy when they are released. Issued share capital is the value of shares actually held by investors.
