Archive | Issue of Shares

Accounting Treatment for Issue of Shares at Par | India | Company

In this article we will discuss about the accounting treatment for the issue of shares at par, explained with the help of suitable illustrations. When a shareholder is required to pay an amount equal to the face value or nominal value of shares, then such issue of shares is at par. To have a complete […]

Issue of Shares: Problems and Solutions | India | Accounting

Here is a compilation of top six accounting problems on issue of shares with its relevant solutions.  Problem 1 (Issue of Shares at Par—Journal, Cash Book and Balance Sheet): A Limited Company issued 25,000 Ordinary Shares of Rs. 25 each payable Rs. 5 on application, Rs. 10 on allotment and Rs. 5 each on subsequent […]

Journal Entries on Issue of Shares

In this article we will discuss about the Journal Entries on Issue of Shares for Consideration Other than Cash. 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 […]

Issue of Shares by a Company

The following points highlight the five main steps for the issue of shares by a company. The steps are: 1. Issue of Prospectus 2. Use of Application Moneys 3. Pro Rata Allotment 4. Calls in Advance 5. Calls in Arrear 6. Balance Sheet. Step # 1. Issue of Prospectus: To collect capital from the public, […]

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