Issue Of Shares Sums

B 10 000 14 debentures of rs 100 each. A 1 00 000 equity shares of rs 10 each at a premium of 10 per cent. The company makes the following issues.

The company decides to redeem the shares on december 31 2011 at a premium of 5 per cent. A company has 40 000 12 redeemable preference shares of rs 100 each fully paid. Further assume that the application and allotment moneys rs 2 50 and rs 2 50 per share respectively are received in respect of all the shares but the first call and the second call rs 3 and rs 2 per share respectively are not received in respect of 500 shares which are.

Suppose a company issues equity shares of rs 10 each at par. The assets and liabilities taken over were. 42 a ltd purchased running business from b ltd for a sum of rs 1 50 000 payable by issue of 10 000 equity shares of rs 10 each at a premium of rs 2 per share and balance in cash.

To issue shares a company follows a definite procedure which is controlled and regulated by the companies act and securities exchange board of india sebi. It is also known as the nominal value or denomination of a share. Face value of a share is the par value of the share.

Procedure of issue of shares. In a public issue the shares are offered for sale in order to raise. Public issue or public offering refers to the issue of shares or convertible securities in the primary market by the company s promoters so as to attract new investors for a subscription.

There are a number of ways in which the shares of a company can be issued as discussed below. Types of issue of shares. Usually the companies that are financially strong well managed and have a good reputation in the market issue their shares at a premium.

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. Issue of share is the first chapter in corporate accounting also an introduction to company accounts and understanding of shares and also an introduction to.

6 per share including premium and balance in two calls in equal amount. 3 per share on allotment rs. 5 per share payable as.

Noor khan limited company was established with authorized capital of 100 000 shares and invited applications for 10 000 shares of 10 each at premium of rs. Forfeiture and reissue of shares journal entries. Issue of prospectus receiving applications allotment of shares are three basic steps of the procedure of issuing the.

The company follows the rules prescribed by companies act 2013 while issuing the shares. Shareholders can be either individuals or corporates. Issue of shares is the process in which companies allot new shares to shareholders.

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.