Download - Corporation Accounting
Presented By:
Instructor : Sir, Bilal Khan
60 Azamul Haq 88 Arslan Sajjad49 Shehroz Aslam 48 Shahrukh Durrani64 Shahbaz Ali Sahu 84 Zahid Iqbal
The definition of cooperation is people working together to achieve results or people helping each other out to achieve a common goal.
An example of cooperation is when one person hands you a brick and you lay the brick.
The act of cooperating; joint effort or operation
The association of a number of people in an enterprise for mutual benefits or profits
An interaction between organisms that is largely beneficial to all those participating
No personal liability for Stockholders.
Ease of accumulating capital.
Readily transferable ownership shares.
Continuous existence.
Professional management
Stage l Promotion
Stage ll In corporation (SECP)
Stage lll Raising Of capital
Stage lV Commencement of business
Chartered Companies (Bank of England)
Statutory Company (state bank of Pakistan)
Registered Company (Registered Company act) e.g.: Adamjee Co.
Unlimited Companies i.e. (Partnership Liability is unlimited)
Companies Limited By Guarantees (liability depends on guaranteed amount)
Companies Limited By Stock
(i) Private Limited Company (2-50 Members) no investors
(ii)Public Limited Company > 7 persons investors
The right to sell their shares.
The right to vote on the directors nominated by the board.
The right to nominate directors (although this is very difficult in practice because of minority protections) and propose shareholder resolutions.
The right to dividends if they are declared.
The right to purchase new shares issued by the company.
The right to what assets remain after a liquidation.
1) Recruit, supervise, retain, evaluate and compensate the manager.
2) Provide direction for the organization.
3) Establish a policy based governance system.
4) Govern the organization and the relationship with the CEO.
5) Fiduciary duty to protect the organization’s assets and member’s investment.
6) Monitor and control function
A corporate officer is a person employed by a corporation who holds an office such as president, vice-president, secretary or treasurer. Officers are appointed to their position by a corporation's board of directors. Officers' responsibilities vary depending on what powers the corporation has specifically given them. Officers are agents of the corporation, and, therefore, they have fiduciary duties to the corporation called the duty of loyalty and the duty of care.
They shall at all times strive to achieve perfection in the performance
Work fairly and objectively with the Board, Management and stockholders;
Have appropriate administrative and interpersonal skills;
If he is not at the same time the corporation’s legal counsel, be aware of law
Have a knowledge of the operations of the corporation;
Ensure that all Board procedures, rules and regulations are strictly followed by the members;
The portion of the balance sheet that represents the capital received from investors in exchange for stock (paid-in capital), donated capital and retained earnings.
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A cash dividend is money paid to stockholders, normally out of the corporation's current earnings or accumulated profits. Not all companies pay a dividend. Usually, the board of directors determines if a dividend is desirable for their particular company based upon various financial and economic factors.
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The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents the size of the equity position of a firm and can be found on the balance sheet (or notes) of a typical financial statement.
SEC authorization required
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Par value
is the face value of a bond. It is the principal amount that the lender (investor) is lending to the borrower (issuer).
market value
The amount for which something can be sold
on a given market.
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A security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy. Common stockholders are on the bottom of the priority ladder for ownership structure. In the event of liquidation, common shareholders have rights to a company's assets only after bondholders, preferred shareholders and other debt holders have been paid in full.
In the U.K., these are called "ordinary shares."
A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before dividends to common stockholders and the shares usually do not have voting rights.
Preferred as to dividends
Cumulative dividend rights
Proffered as to assets in event of the liquidation of the company
Callable at the option of the corporation
No voting power
Kashif & co.Ltd.was newly formed with an authorized capital of Rs: 500,000 divided into 5000 shares of Rs:100 each.The co. issued 4,000 shares.Applications of 4,000 shares were received These shares were alloted.Pass the journal
Bank account 400,000
To share application accounts 400,000