B Com Exam > B Com Questions > Batliboi co Ltd issued 50000 equality shares ...
Start Learning for Free
Batliboi co Ltd issued 50000 equality shares of rs.10 each to the piblicon thr condition that full amount of shares will be paid in a lumnb sum .All these shares were taken up and paid by the public.pass journal entries in the books of company when shares issued at par ,shares are issued at premium of 20% and shares are issued at a discount of 10%?
Most Upvoted Answer
Batliboi co Ltd issued 50000 equality shares of rs.10 each to the pibl...
Journal Entries for Issuing Shares at Par, Premium and Discount
Issuing shares is an important aspect of a company's financial management. When a company issues shares, it raises capital from the public or investors. The journal entries for issuing shares at par, premium and discount are as follows:
1. Issuing Shares at Par
When shares are issued at par, it means that the company is issuing shares at their face value. For example, if the face value of a share is Rs. 10, and the company issues 50,000 shares at par, the total amount raised will be Rs. 5,00,000. The journal entry for issuing shares at par is as follows:
Bank Account Dr. 500000
To Share Capital Account 500000
2. Issuing Shares at Premium
When shares are issued at a premium, it means that the company is issuing shares at a price higher than their face value. For example, if the face value of a share is Rs. 10, and the company issues 50,000 shares at a premium of 20%, the total amount raised will be Rs. 6,00,000 [(50,000 x 10) + (50,000 x 2)]. The journal entry for issuing shares at a premium is as follows:
Bank Account Dr. 600000
To Share Capital Account 500000
To Securities Premium Account 100000
3. Issuing Shares at Discount
When shares are issued at a discount, it means that the company is issuing shares at a price lower than their face value. For example, if the face value of a share is Rs. 10, and the company issues 50,000 shares at a discount of 10%, the total amount raised will be Rs. 4,50,000 [(50,000 x 10) - (50,000 x 1)]. The journal entry for issuing shares at a discount is as follows:
Bank Account Dr. 450000
To Share Capital Account 500000
To Discount on Issue of Shares Account 50000
In conclusion, issuing shares is an important aspect of a company's financial management. When shares are issued at par, premium or discount, the journal entries should be recorded accordingly. It is important to ensure that the entries are accurate and comply with accounting standards.
Issuing shares is an important aspect of a company's financial management. When a company issues shares, it raises capital from the public or investors. The journal entries for issuing shares at par, premium and discount are as follows:
1. Issuing Shares at Par
When shares are issued at par, it means that the company is issuing shares at their face value. For example, if the face value of a share is Rs. 10, and the company issues 50,000 shares at par, the total amount raised will be Rs. 5,00,000. The journal entry for issuing shares at par is as follows:
Bank Account Dr. 500000
To Share Capital Account 500000
2. Issuing Shares at Premium
When shares are issued at a premium, it means that the company is issuing shares at a price higher than their face value. For example, if the face value of a share is Rs. 10, and the company issues 50,000 shares at a premium of 20%, the total amount raised will be Rs. 6,00,000 [(50,000 x 10) + (50,000 x 2)]. The journal entry for issuing shares at a premium is as follows:
Bank Account Dr. 600000
To Share Capital Account 500000
To Securities Premium Account 100000
3. Issuing Shares at Discount
When shares are issued at a discount, it means that the company is issuing shares at a price lower than their face value. For example, if the face value of a share is Rs. 10, and the company issues 50,000 shares at a discount of 10%, the total amount raised will be Rs. 4,50,000 [(50,000 x 10) - (50,000 x 1)]. The journal entry for issuing shares at a discount is as follows:
Bank Account Dr. 450000
To Share Capital Account 500000
To Discount on Issue of Shares Account 50000
In conclusion, issuing shares is an important aspect of a company's financial management. When shares are issued at par, premium or discount, the journal entries should be recorded accordingly. It is important to ensure that the entries are accurate and comply with accounting standards.
Community Answer
Batliboi co Ltd issued 50000 equality shares of rs.10 each to the pibl...
File attached
|
Explore Courses for B Com exam
|
|
Similar B Com Doubts
Batliboi co Ltd issued 50000 equality shares of rs.10 each to the piblicon thr condition that full amount of shares will be paid in a lumnb sum .All these shares were taken up and paid by the public.pass journal entries in the books of company when shares issued at par ,shares are issued at premium of 20% and shares are issued at a discount of 10%?
Question Description
Batliboi co Ltd issued 50000 equality shares of rs.10 each to the piblicon thr condition that full amount of shares will be paid in a lumnb sum .All these shares were taken up and paid by the public.pass journal entries in the books of company when shares issued at par ,shares are issued at premium of 20% and shares are issued at a discount of 10%? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Batliboi co Ltd issued 50000 equality shares of rs.10 each to the piblicon thr condition that full amount of shares will be paid in a lumnb sum .All these shares were taken up and paid by the public.pass journal entries in the books of company when shares issued at par ,shares are issued at premium of 20% and shares are issued at a discount of 10%? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Batliboi co Ltd issued 50000 equality shares of rs.10 each to the piblicon thr condition that full amount of shares will be paid in a lumnb sum .All these shares were taken up and paid by the public.pass journal entries in the books of company when shares issued at par ,shares are issued at premium of 20% and shares are issued at a discount of 10%?.
Batliboi co Ltd issued 50000 equality shares of rs.10 each to the piblicon thr condition that full amount of shares will be paid in a lumnb sum .All these shares were taken up and paid by the public.pass journal entries in the books of company when shares issued at par ,shares are issued at premium of 20% and shares are issued at a discount of 10%? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Batliboi co Ltd issued 50000 equality shares of rs.10 each to the piblicon thr condition that full amount of shares will be paid in a lumnb sum .All these shares were taken up and paid by the public.pass journal entries in the books of company when shares issued at par ,shares are issued at premium of 20% and shares are issued at a discount of 10%? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Batliboi co Ltd issued 50000 equality shares of rs.10 each to the piblicon thr condition that full amount of shares will be paid in a lumnb sum .All these shares were taken up and paid by the public.pass journal entries in the books of company when shares issued at par ,shares are issued at premium of 20% and shares are issued at a discount of 10%?.
Solutions for Batliboi co Ltd issued 50000 equality shares of rs.10 each to the piblicon thr condition that full amount of shares will be paid in a lumnb sum .All these shares were taken up and paid by the public.pass journal entries in the books of company when shares issued at par ,shares are issued at premium of 20% and shares are issued at a discount of 10%? in English & in Hindi are available as part of our courses for B Com.
Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of Batliboi co Ltd issued 50000 equality shares of rs.10 each to the piblicon thr condition that full amount of shares will be paid in a lumnb sum .All these shares were taken up and paid by the public.pass journal entries in the books of company when shares issued at par ,shares are issued at premium of 20% and shares are issued at a discount of 10%? defined & explained in the simplest way possible. Besides giving the explanation of
Batliboi co Ltd issued 50000 equality shares of rs.10 each to the piblicon thr condition that full amount of shares will be paid in a lumnb sum .All these shares were taken up and paid by the public.pass journal entries in the books of company when shares issued at par ,shares are issued at premium of 20% and shares are issued at a discount of 10%?, a detailed solution for Batliboi co Ltd issued 50000 equality shares of rs.10 each to the piblicon thr condition that full amount of shares will be paid in a lumnb sum .All these shares were taken up and paid by the public.pass journal entries in the books of company when shares issued at par ,shares are issued at premium of 20% and shares are issued at a discount of 10%? has been provided alongside types of Batliboi co Ltd issued 50000 equality shares of rs.10 each to the piblicon thr condition that full amount of shares will be paid in a lumnb sum .All these shares were taken up and paid by the public.pass journal entries in the books of company when shares issued at par ,shares are issued at premium of 20% and shares are issued at a discount of 10%? theory, EduRev gives you an
ample number of questions to practice Batliboi co Ltd issued 50000 equality shares of rs.10 each to the piblicon thr condition that full amount of shares will be paid in a lumnb sum .All these shares were taken up and paid by the public.pass journal entries in the books of company when shares issued at par ,shares are issued at premium of 20% and shares are issued at a discount of 10%? tests, examples and also practice B Com tests.
|
|
Explore Courses for B Com exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup