Issue of shares at Premium – Practical Problem with answer
Asian Ltd. issued 5,000 Preference Share of $10 each at a premium of $4 per share, payable $1 per share on application; $6 per share on allotment including premium; 3 per share on first call and $4 per share on final call. The shares were all subscribed and money was duly received.
Issue of Shares at Discount – Practical Problem with Answer
An existing Company offered 20,000 Equity Shares of $10 each at a discount of 5%. The shares were payable as under:
|On Application||$3 per share|
|On Allotment||$4 per share|
|On FirstFinal Call||$2.50 per share|
Public applied for 16,000 shares and shares have been allotted. All the money was received. Pass entries in the journal and Cash Book and show the Balance Sheet.