Glossary of Advance Accounting Terms for the Job of Accountant & Auditor (Part-I)

PREPARATION FOR NTS, CTS, FPSC, PPSC JOBS FOR BUSINESS STUDENTS

NTS PAST PAPERS MCQs

NTS PAPERS PREPARATION FOR PUNJAB FOOD AUTHORITY JOB 2019
PUNJAB FOOD AUTHORITY PAPERS PREPARATION

Advance Accounting Glossary:

Joint Stock Company?

It is an artificial person recognized by law, with a distinctive name, a common seal, a common capital comprising transferable shares carrying limited liability and having a perpetual succession.

Separate Legal Entity?

Joint Stock Company is the creation of law, it can sue or be sued in its name. It can own and transfer the title to property.

Company Limited by Shares?

This is a principle form of Company. Its Capital is divided into number of shares. The shares can be freely transferred and sold. The liability of the members is limited.

Private Limited Company?

It can by formed at least by two persons and cannot exceed fifty persons. It prohibits any invitation to the public for investment.

Public Limited Company?

It can by formed by at least seven members and there is no limit to the maximum members. It can invite to the public for investment.

Company Limited by Grantee?

It is formed mostly when the work is of non-profit making nature. Liability of its members are limited such amount as the members may respectively undertake to contribute to the assets of the company in the event of tis being wound up.

Unlimited Company?

The liability of its members are unlimited. Every member of the company is personally liable to the full extent of his personal assets for all the debts of the company while he was a member. These companies due to great risk do not exist here.

Accounts

Memorandum of Association?

It is the basic document of the company. It is known as charter of the company. If contains the fundamental conditions upon which alone company can be incorporated. It sets out the limits outside which the action of the company cannot go.

Purpose of Memorandum of association?

Its main purpose is to enable shareholders and creditors and all those who deal with it to know its permitted range of enterprise.

Articles of Association?

It is second important document in the incorporation of a company. It contains the rules and regulations for the internal management of the company.

Prospectus?

It is a document described or issued as prospectus and includes any notice, circular, advertisement or other communication, inviting offers from the public for the subscription or purchase of any shares.

OR

It is a valuable document issued by the company for raising of the capital.

Shares?

The total capital of the company is divided into smaller units. Each unit is called share.

Share Capital?

The total capital of the company is divided into a large number of shares. This pool is, therefore, called share capital.

Authorized Capital?

It is the amount of capital with which the company is registered. This capital is mentioned in the memorandum of association. This capital is also known as nominal capital or registered capital.

Issued Capital?

Shares offered to the general public for contribution are known as shares issued. The total par value of such shares is called issued capital.

Subscribed Capital?

Out of the total number of shares offered (Issued) by the company, that number of shares which is taken up by the public are known as shares subscribed. The total per value of such shares is called subscribed capital.

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