What is a Share capital in account
Answers
Answer:
Share capital refers to the funds that a company raises in exchange for issuing an ownership interest in the company in the form of shares.
The answer is shown below:
Explanation:
The share capital is the amount that is raised by the company with a view to give the company ownership interest to the shareholders in respect of shares. It mainly represents the ownership of the shareholders
There are mainly two types of share capital i.e equity shares and preference shares.
The formula to compute the share capital is shown below:
Share capital = Number of outstanding shares × issued price per share
By multiplying the number of outstanding shares with the issued price per share we get the share capital
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About share capital in accounts
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