Meaning and Definition of Share Capital

What is the Meaning and Definition of Share Capital?

March 2, 2023Posted inAdvance AccountingNo Comments
Share capital, also known as equity capital or registered capital, is the amount of money that a company raises by issuing shares of stock to investors. This money is used to finance the company's operations, invest in new projects, and pay dividends to shareholders. Share capital represents the ownership of a company, and shareholders are entitled to a proportionate share of the company's profits and assets.
What is Ledger

What is Ledger?

March 2, 2023Posted inAdvance AccountingNo Comments
A ledger is a financial record that is used to record and classify a business's financial transactions. It is a collection of accounts that represents all the assets, liabilities, equity, revenue, and expenses of the business. Each account in the ledger represents a specific type of financial transaction, such as cash, accounts receivable, or accounts payable.
What is Trial Balance

What is Trial Balance?

March 1, 2023Posted inAdvance AccountingNo Comments
A trial balance is a list of all the accounts and their balances in a company's general ledger at a specific point in time. The purpose of a trial balance is to verify that the total of all debit balances in the general ledger equals the total of all credit balances.
What is Prepaid Expenses

What is Prepaid Expenses?

March 1, 2023Posted inAdvance AccountingNo Comments
Prepaid expenses refer to payments made by a business for goods or services that will be received or used in the future. They are recorded as assets on a company's balance sheet, because they represent resources that will be used up over time. The payments for prepaid expenses are made in advance and are recorded as an asset on the balance sheet until the goods or services are received or used, at which point they are recorded as an expense.
What is Partnership Deed

What is Partnership Deed?

March 1, 2023Posted inAdvance AccountingNo Comments
A partnership deed, also known as a partnership agreement, is a legal document that outlines the terms and conditions of a partnership. It lays out the rights and responsibilities of the partners, the management of the business, and the distribution of profits and losses.
What is Outstanding Expenses

What is Outstanding Expenses?

February 25, 2023Posted inAdvance AccountingNo Comments
Outstanding expenses refer to the expenses that have been incurred by a business but have not yet been paid for. These are also known as unpaid expenses or accrued expenses. They are recorded in the company's financial statements as accounts payable or accrued liabilities.