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 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 accounting records for the sums [...]