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 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 [...]
In this article we will discuss about the journal entries required for the issue of shares, explained with the help of suitable illustrations. Many times, it is seen that shares have been allotted to persons or firms, from whom assets have been purchased. Such issues of shares have been clearly shown in Balance Sheet and distinguish such shares from shares [...]