16.2 Share capital
　　Ordinary shares(equity shares) vs preference shares
　　Redeemable preference shares:
　　●Are repayable by the company at a specified future date. (on this date, the shares are cancelled and shareholders repaid)
　　●Have the characteristics of debt. Therefore classified as a liability on the SFP.
　　Irredeemable preference shares:
　　●Not redeemable
　　●Remain in existence indefinitely
　　●Classified as equity on the SFP
　　Share capital terminology:
　　●Authorized share capital: maximum number of shares that a company may issue.
　　●Issued share capital: actual number of shares in issue at any point of time.( Appears on SFP)
　　●Called up share capital: is the amount of the nominal value paid by the shareholders plus any further amounts that they have agreed to pay in the future.
　　●Paid up share capital: the amount of nominal value paid at the current date.
　　Accounting for the issue of shares: - a company will generally issue shares at above par (nominal) value.
　　●An ordinary or irredeemable preference share issue is:
　　Issue of shares at nominal value:
　　Dr Cash XX
　　Cr. Share capital a/c XX
　　Issue of share at a premium
　　Share premium: different between the proceeds of issue and the nominal value
　　Dr Cash ( issue price x no. of shares)
　　Cr Share capital a/c (nominal value x no. of shares)
　　Cr Share premium a/c (the difference)
　　Both the share capital and share premium accounts are shown on the statement of financial position within the “ Equity or share and capital reserves” section.
　　Share capital
　　Accumulative profit
　　Share premium
　　R*uation Reserve
　　Other reserves
　　Uses of the share premium a/c
　　Non-distributable reserve
　　Cannot be used to pay a dividend
　　Can be used to cover the cost of new share issues
　　Can be turned into share capital via bonus issue
　　●Redeemable preference share issue is:
　　Dr. Cash issue price x no. of shares
　　Cr. Liability issue price x no. of shares