ACCOUNTS 
[77° 
if the discount cannot be written off, a sinking fund should 
be created, built up by annual contributions from revenue 
of such an amount as shall, by the date of redemption, 
represent the total amount of discount at which the deben- 
tures were originally issued. Commission on issues of shares 
should be written off at the earliest possible date, as also 
should shares issued at a discount pursuant to s. 47. 
[n the case of a premium, if the conditions of the issue 
provide for the repayment at par of the loan capital in respect 
of which it was collected, this can be retained on the balance 
sheet, and in the case of both share and debenture capital, 
there is no legal obstacle to the amount of cash collected by 
way of premium being treated as divisible profit, if the articles 
of the company permit. In practice, however, a cash distri- 
bution might involve claims for income-tax and such premiums 
are more often used for the purpose of a capitalisation of profits 
and a distribution of bonus shares. 
Cash resulting from issues of capital should be transferred 
from time to time from the share capital cash accounts to 
the current banking account. 
Should there be any amounts outstanding on account of 
any call, after the due date fixed for its payment, notice 
will have to be sent to the shareholders in arrear, and such 
steps taken as may be necessary to enforce payment, in 
order that the call account may be fully cleared by the cash 
received. 
The upper parts of the call letters are returned to the 
company by its bankers, who will have given any necessary 
receipt to the shareholder. They are then checked against 
the call cash book, and the amounts paid up on the shares 
posted to the credit of the individual shareholders in the 
share register. 
The transfer and other registration fees should be collected mpanster 
from the registration department at stated intervals by Fees. 
the accountant, who should satisfy himself that all fees for 
transfers lodged for registration, probates, letters of adminis- 
tration and other transfers of title have been collected. 
{t is usual for the board to issue a cheque in favour of the Dividend and 
bankers for the exact amount of any dividend or debenture Interest 
interest, with instructions for it to be placed to the credit Payments. 
of the specific dividend or interest account, and this cheque 
will be treated through the cash book in the same way as an 
ordinary payment and charged to dividend or interest, which 
will in due course be cleared by crediting the warrants, as 
paid, by a journal entry agreeing with the special pass book. 
In some companies it is the practice to journalise the Journal 
whole of the entries in the cash book. The only object Entries.