The accounting for share capital involves a sequence of steps that a company follows when issuing and managing its share capital. Here's the typical sequence of accounting for share capital:

Authorization and Issuance of Share Capital: The process begins with the authorization of share capital by the company's board of directors and shareholders. The company decides on the total authorized share capital and the types of shares to be issued, such as common shares or preference shares.

Issue of Prospectus (if applicable): If the company is a public company or is making a public offering of its shares, a prospectus is prepared and issued to potential investors. The prospectus contains information about the company, its financials, and the terms and conditions of the shares being offered.

Allotment of Shares: After receiving applications from investors, the company's board of directors evaluates these applications and decides to allot shares to the applicants. This is the point at which the company formally allocates shares to shareholders.

Receipt of Application Money: Upon allotment of shares, the company typically receives application money from shareholders. This represents a part of the total share price and is recorded as a liability until the shares are fully paid.

Call on Shares: After allotment, the company may make calls on shareholders for the balance of the share price. Calls can be made in one or more installments. The company records these calls as an asset and informs shareholders of the due dates for payment.

Receipt of Calls: When shareholders make payments for the calls made on their shares, the company records these payments as received and updates the share capital account accordingly.

Forfeiture of Shares (if applicable): If a shareholder fails to pay the calls, the company may forfeit their shares. This involves canceling the shares, and any amount already paid is forfeited. The company records the forfeiture and may reissue the forfeited shares.

Reissue of Forfeited Shares (if applicable): If the company decides to reissue forfeited shares, it records the reissue and updates the share capital account accordingly.

Buyback of Shares (if applicable): Some companies may choose to buy back their own shares from existing shareholders. The cost of buyback is debited to a specified reserve account.

Redemption of Preference Shares (if applicable): If the company has issued redeemable preference shares, it redeems these shares by repurchasing them from shareholders on or after the redemption date. The redemption is recorded, and the shares are canceled.

Disclosure and Reporting: The company must provide detailed disclosures about its share capital in its financial statements, including the authorized, issued, subscribed, and paid-up share capital. This information is presented in the balance sheet and notes to the financial statements.

The exact sequence and specific steps may vary based on the company's structure, legal requirements, and the terms of share issuances. Proper accounting for share capital is essential to maintain accurate financial records and compliance with applicable laws and regulations.