In this article we will discuss about the accounting entries for the issue of shares at premium, explained with the help of an illustration. A company likely to be very successful and enjoying a good reputation, asks intending shareholders to pay, on each share, a sum higher than the face value. In other words, when shares are issued at a [...]
In this article we will discuss about the accounting entries for issue of debentures. (A) Issue of Debenture for Cash: The issue procedure with regard to debentures is the same as that of shares. The amount due on debentures may be paid in installments, such as, Application, Allotment and Calls. When debentures are issued at premium, the amount of premium [...]
In this article we will discuss about the accounting procedure for the issue of shares at discount, explained with the help of necessary journal entries and illustration. Generally a Company is not allowed to issue shares at a discount, i.e. at a price less than the face value of the shares. However, if a Company wants to raise capital by [...]