Appropriateprofite.sra lesUnit 3: Accounting for CompaniesUnits/TopicsAccounting for Share Capital• Share and share capital: nature and types.Accounting for share capital issue andallotment of equity and preference shares.Public subscription of shares oversubscription and under subscription of shares;issue at par and at premium, calls in advanceand arrears (excluding interest), issue of sharesfor consideration other than cash.• Concept of Private Placement and EmployeeStock Option Plan (ESOP).• Accounting treatment of forfeiture andre-issue of shares.• Disclosure of share capital in the BalanceSheet of a company.Learning OutcomesAfter going through this Unit, the studentswill be able to:• state the meaning of share and share capitaland differentiate between equity shares andpreference shares and different types of sharecapitalunderstand the meaning of private placementof shares and Employee Stock Option Plan.explain the accounting treatment of sharecapital transactions regarding issue of shares.• develop the understanding of accountingtreatment of forfeiture and reissue of forfeitedshares.describe the presentation of share capital inthe balance sheet of the company as percount​