In this article we will discuss about the accounting entries for call-in-arrears and calls-in-advance, explained with the help of an illustration. Calls-In-Arrears: If any amount, called in respect of a share, is not paid before or on the date fixed for payment thereof, such amount which is not paid, is called "CALLS-IN-ARREARS". Amount may be called up by the Company [...]
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 procedure for under-subscription and over-subscription of shares, explained with the help of suitable illustrations. Under-Subscription: Sometimes, the applications for shares received are less than the number of shares issued. For instance, a Company issued 10,000 shares to the public and the Company received applications for 8000 shares from the public. This [...]