BASIC CONCEPTS OF COMPANY ACCOUNTS :

The company form of business organization is a voluntary association of persons to carry on a business. Normally, it is given a legal status and is subject to certain legal regulations. It is an association of persons who generally contribute money for some common purpose. The money so contributed is the capital of the company. The persons who contribute capital are its members. The proportion of capital to which each member is entitled is called his share, therefore members of a joint stock company are known as shareholders and the capital of the company is known as share capital. The total share capital is divided into a number of units known as ‘shares’. The companies are governed by the Indian Companies Act, 2013.