When common and preferred shares are issued at par. At 0 8 per share of common stock and 80 per share of preferred stock. At 10 per share of common stock and 120 per share of preferred stock.
Make journal entries to record these transactions in the books of northern company if the shares are issued. For example if the face value of a share is rs 100 and is issued at rs 110 per share the excess amount of rs 10 is a share premium. The issue of share at a price higher than its face value or nominal value is known as an issue of share at a premium.
Issue of shares at a premium. To illustrate assume that the dewitt corporation which is authorized to issue 10 000 shares of common stock without par value assigns a stated value of 20 per share to its stock. The legal capital of a corporation issuing no par shares with a stated value is usually equal to the total stated value of the shares issued.
Entries will be as follows. Or it may take over a running business and the consideration for the business may be discharged by the company fully or partly in the form of its own shares. It may for example purchase some fixed assets for which it may make payment in the form of shares.
A company may issue shares for consideration other than cash. Give journal entries and balance sheet. 100 each as fully paid.
2 00 000 and in payment allotted 2 000 shares of rs. A company purchased land costing rs. A at par b at a discount of 5 and c at a premium of 25.
Show the journal entries if such issues are made.
Issue of shares at par journal entries. Issue of share at par. Amount payable in installments. A when application money is received. To share application a c being the application money received on shares notes.
Share application a c is a collective account of various applicants. It is a representative personal account. Issue of shares at premium. The issue of shares at premium refers to the issue of shares at a price higher than the face value of the share.
In other words the premium is the amount over and above the face value of a share. Usually the companies that are financially strong well managed and have a good reputation in the market issue their shares at a premium. Accounting entries regarding issue of shares at par. A company may issue shares at their face value or at a price other than the face value.
When shares are issued at a price equal to their face value it is termed as shares issued at par. When issue price of a share is more than its face value it is known as shares issued at a premium. There are various ways or prices at which a company issues its shares like at par at a premium and at discount. The issue of shares at a discount means the issue of the shares at a price less than the face value of the share.
For example if a company issues share of rs 100 at rs 90 then rs 10 i e. Rs 100 90 is the amount of discount. Issue of shares at premium a company can issue its shares at their face value. When company issues its shares at their face value the shares are said to have been issued at par.
Company can also issue its shares at more than or less than its face value i e at premium or at discount respectively.
Company can also issue its shares at more than or less than its face value i e at premium or at discount respectively. When company issues its shares at their face value the shares are said to have been issued at par. Issue of shares at premium a company can issue its shares at their face value.
Rs 100 90 is the amount of discount. For example if a company issues share of rs 100 at rs 90 then rs 10 i e. The issue of shares at a discount means the issue of the shares at a price less than the face value of the share.
There are various ways or prices at which a company issues its shares like at par at a premium and at discount. When issue price of a share is more than its face value it is known as shares issued at a premium. When shares are issued at a price equal to their face value it is termed as shares issued at par.
A company may issue shares at their face value or at a price other than the face value. Accounting entries regarding issue of shares at par. Usually the companies that are financially strong well managed and have a good reputation in the market issue their shares at a premium.
In other words the premium is the amount over and above the face value of a share. The issue of shares at premium refers to the issue of shares at a price higher than the face value of the share. Issue of shares at premium.
It is a representative personal account. Share application a c is a collective account of various applicants. To share application a c being the application money received on shares notes.
A when application money is received. Amount payable in installments. Issue of share at par.
