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.
Give the journal and Cash Book entries and Balance Sheet.
Solution
Journal Entries
Cash Book
Balance Sheet
Issue of Shares at Discount – Practical Problem with Answer
Illustration
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.