Home | | Accountancy 12th Std | Issue of shares for cash in lumpsum

Chapter: 12th Accountancy : Company Accounts

Company Accounts | Accountancy | Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail |

Issue of shares for cash in lumpsum

When shares issued either at par or at premium are payable in single payment, the shares are said to be issued against lumpsum payment.

Issue of shares for cash in lumpsum

When shares issued either at par or at premium are payable in single payment, the shares are said to be issued against lumpsum payment.

The following journal entries are passed:


 

Illustration 19

Sara Company issues 10,000 equity shares of 10 each payable fully on application.

Pass journal entries if the shares are issued

i.            at par

ii.            at a premium of 2 per share.

Solution

In the books of Sara Company Journal entries

(i) Issued at par


(ii) Issued at a premium



Tags : Company Accounts | Accountancy Company Accounts | Accountancy
Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail


Copyright © 2018-2020 BrainKart.com; All Rights Reserved. Developed by Therithal info, Chennai.