Issues of 
Capital. 
[72 
SECRETARIAL PRACTICE 
accounts of a large trading concern which may be held to 
reflect upon the work of the secretary in his primary capacity 
of chief official, and as the focussing point under the directors 
of the whole of the concerns of his company. There are 
of course other matters of account in which the fully equipped 
secretary will be interested, even if the magnitude of his 
company makes it impracticable for him to take any active 
part in the book-keeping. These matters of account are 
those dealing with the company as a legal entity, such as, for 
example capital and dividend accounts. The secretary of 
a large company will find that calculating machines are an 
essential part of office equipment. 
A company having decided to issue the whole or part of 
the authorised capital, the necessary board minutes and 
arrangements for the issue will be made, and it will then be 
the duty of the secretary to see that the money for the shares 
is paid into the banking account of the company, and he will 
first of all collect the amount due from the original subscribers, 
and when this is paid into the company’s banking accounts, 
it will, in the ordinary way, be entered in the share cash book. 
A separate account must be opened at the bankers called 
Share Capital—Application Account,” and the application 
forms will be collected day by day from the bank, agreed 
with the pass book, and entered in detail in a share cash 
book. If the issue has been over-subscribed, the surplus 
amount will remain to the credit of the ‘Application Account’ 
until after allotment, when it will be transferred to the 
‘Allotment Account” and credited to the individual sub- 
scribers in respect of amounts payable on allotment. 
As soon as the allotment letters have been posted, an 
account will be opened at the bank called ‘Share Capital: 
Allotment Account.’ The amounts received on allotment, 
and subsequently the amounts received on calls, will ‘be 
dealt with in the same manner as in the case of amounts 
received on applications. In dealing with issues of debenture 
stock, the same methods will apply. 
In the case of debenture stock, if, as is often the case, the 
trust deed has not been executed and the security completed 
before the issue is made, the trustees for stock holders 
generally insist that moneys received from the subscribers 
should remain under the control of the trustees until the 
security has been constituted. 
In the event of shares being issued at a premium, or of a 
commission being paid on their issue, or of debentures being 
issued at a discount or at a premium, the amount of the in- 
stalment will vary. In the case of an issue at a discount, 
where the debentures are terminable and repayable at par,