It can do so only in cases such as reissue of forfeited. Answer in normal condition as a general rule a company cannot ordinarily issue shares at a discount. State clearly the conditions under which a company can issue shares at a discount.
Iv to pay premium on the redemption of preference shares or debentures of the company. 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. The company has decided to pay bonus to shareholders by making the partly paid share as fully paid.
It has a balance in the reserve fund account amounting to rs. 6 per share paid. A company has a share capital of 5 00 000 equity shares of rs.
Problem with solution 2. Bonus issue of shares. Thus pro rata allotment becomes necessary.
Usually the companies that are financially strong have a good reputation in the market or have profitable future prospects receive over subscription of shares. This is known as over subscription of shares. A company may receive applications for shares more than the number of shares it has offered to the public.
Issue price and face value are same.
Issue of shares questions with solutions. A company made an issue of 10 000 shares of rs. 10 each payable rs. 4 on allotment and balance on call. 43 825 shares were applied for including an application for 300 shares from a person who paid for the full face value of the shares.
Owing to over subscription allotments were scaled down as follows. Accounting for share capital important questions for cbse class 12 accountancy accounting treatment of issue shares. 1 terms of issue of shares i issue of shares at par when shares are issued at their face value the shares are said to have been issued at par.
1 terms of issue of shares i issue of shares at par when shares are issued at their face value the shares are said to have been issued at par. Accounting for share capital important questions for cbse class 12 accountancy accounting treatment of issue shares. Owing to over subscription allotments were scaled down as follows.
43 825 shares were applied for including an application for 300 shares from a person who paid for the full face value of the shares. 4 on allotment and balance on call. 10 each payable rs.
A company made an issue of 10 000 shares of rs.
