Pass the journal entry to record the issuance of shares. A company received 34 000 for issuing 10 000 shares of common stock of 3 par value. However if board of directors of the company assigns a value to shares orally such value is called stated value and the journal entries will be similar to par value stock.
Rs 100 rs 90. The amount of discount is rs 10 per share i e. 90 each the shares are said to be issued at discount.
For example if a company issues its shares of rs 100 each at rs. When the issue price of share is less than the face value shares are said to have been issued at discount. Journal entries issue of shares at discount.
To share first call account being share first call money shares rs per share received. To share capital account being the first call money due on shares rs per shares as per resolution of the directors dated 6 on receipt of the first call money the entry is. As per the terms of the issue 1 25 per share had been received by the company on 1 january 20x4 while the remaining amount was received in full on 30 june 20x4.
Abc plc issued 1 million ordinary shares on 1 january 20x4 having face value of 1 each at an issue price of 1 5 per share. Of shares 100 face value rs 10 discount rs 1. What will be the journal entry if shares are issued at a discount and all money is called at the time of application.
What will be the treatment of balance of discount on issue of shares a c if the company does not write it off. Solved question on issue of shares at discount. Make journal entries to record the issue of shares.
All money was duly received.
Issue of shares entry. 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.
A company may issue shares for consideration other than cash. It may for example purchase some fixed assets for which it may make payment in the form of shares. 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. Entries will be as follows.
Such issues of shares have been clearly shown in balance sheet and distinguish such shares from shares issued for cash. The journal entry is. When the settlement is made by issue of shares of fully paid shares such shares are known as shares issued for consideration other than cash. These shares may either be issued at par or at a premium or.
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.
Its capital is divided into 8 000 equity shares of rs. The company issued 6 000 shares to the public payable rs. 30 per share on application rs. 20 per share on allotment rs.
30 per share on first call and the balance rs. 20 on the final call.
20 on the final call. 30 per share on first call and the balance rs. 20 per share on allotment rs.
30 per share on application rs. The company issued 6 000 shares to the public payable rs. Its capital is divided into 8 000 equity shares of rs.
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. These shares may either be issued at par or at a premium or. When the settlement is made by issue of shares of fully paid shares such shares are known as shares issued for consideration other than cash.
The journal entry is. Such issues of shares have been clearly shown in balance sheet and distinguish such shares from shares issued for cash. 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.
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.
