What is share capital



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hi Binny
what is the meaning of share capital?
and kindly give me the explanation for credit and debit ?

2 Answer(s)


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Cash that is raised by the company in exchange for shares is called share capital. If the company raises Rs. 50 lakhs from investors and issues shares to these investors, then the share capital is Rs. 50 lakhs.

Debit is money that you paid out from your account and credit is money that you received in your account.

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In the doubt entry book keeping system for every credit/debt transaction on the balance sheet there is another corresponding transaction. For example if you take a loan for 10 lakhs then your cash account is credited Rs. 10 lakhs and your liabilities account increases by Rs. 10 lakhs - in order to balance the balance sheet

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