5 each on subsequent calls 20 000 shares were fully subscribed and moneys duly received. 10 on allotment and rs. 5 on application rs.
25 each payable rs. A limited company issued 25 000 ordinary shares of rs. Problem 1 issue of shares at par journal cash book and balance sheet.
It is a capital profit for the company and the amount so earned. Excess of issue price over face value is the amount of premium. When shares are issued at a price higher than the face value also called par value or nominal value it is called an issue of shares at a premium.
The shares are then issued with a par value of one. In its charter the company promises not to sell its stock at lower than par value. Par value for common stock exists in an anachronistic form.
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.
Rs 100 90 is the amount of discount.
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. If issue price of a share is less than its face value it is.
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.
A company can issue its shares either at par at a premium or even at a discount. The shares will be at par is when the shares are sold at their nominal value. Shares sold at a premium cost more than their nominal value and the amount in excess of the face value is the premium. Shares of a company are actually ownership of a company.
So every shareholder is a part owner of the company in which he owns shares. But it would be impossible to main capital accounts for so many shareholders. So there is a unique share capital account and accounting treatment for the issue of shares at par. 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. 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.
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.
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.
So there is a unique share capital account and accounting treatment for the issue of shares at par. But it would be impossible to main capital accounts for so many shareholders. So every shareholder is a part owner of the company in which he owns shares.
Shares of a company are actually ownership of a company. Shares sold at a premium cost more than their nominal value and the amount in excess of the face value is the premium. The shares will be at par is when the shares are sold at their nominal value.
A company can issue its shares either at par at a premium or even at a discount. 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. If issue price of a share is less than its face value it is.
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.
