Stock Cash Tips :
PROCEDURE OF ISSUE OF SHARES :
Face value of a any share is the par value of the share. It is also known as the nominal value or denomination of a share. To issue shares a company follows a described procedure which is controlled and regulated by the Companies Act and Securities Exchange Board of India (SEBI).
There are kind of ways of issue of shares which may be :
(A) For consideration other than cash.
(B) For cash.
(A) Issue of shares for consideration another than cash :
Sometimes shares are issued to the promoters of the company in lieu of the services given by them during the incorporation of the company.
The issue price of these shares is normally debited to Goodwill A/c’ and journal entry is build as follows :
Goodwill A/c To Share Capital A/C
In case a company does not have enough funds for the purchase of fixed assets or for payment to creditors it may of fer and allot its shares to vendors/creditors in lieu of cash. Any alert of shares against which cash isn't yo be received is called ‘issue of shares for consideration other than cash’. For example building is purchased and payment is made by issuing shares.In case of purchase of assets like building, machinery,stock materials etc. the following journal entry is made.
1. On Receipt of Application Money Bank A/c Dr
To Share Application A/c
(Application money received on ....shares of Rs...each)
2. On transferring the Application Money Share Application A/c Dr
To Share Capital A/c (Application money transferred to share capital A/c)
(B) Issue of Shares for cash :
Generally, shares are issued for cash.The company may call the share money either in one installment or in more installments. But company always collects this money by its bankers.
(i) Receipt of share money in one installment :
The company may receive the share money in one installment with any application. In this case the following number of journal entries are made in the books of the company.
(1) On Receipt of Application Money Bank A/c Dr
To Share Application
A/c(Application money received on ....shares of Rs...each)
(2) On transferring the Application Money Share Application A/c Dr
To Share Capital A/c
(Application money transferred to share capital A/c)
If you want to more information regarding the stock tips and many other tips like Equity tips, commodity Tips and many other combo pack call @ 8109999233 or fill form http://equityresearchlab.com/Freetrial.phps
PROCEDURE OF ISSUE OF SHARES :
Face value of a any share is the par value of the share. It is also known as the nominal value or denomination of a share. To issue shares a company follows a described procedure which is controlled and regulated by the Companies Act and Securities Exchange Board of India (SEBI).
There are kind of ways of issue of shares which may be :
(A) For consideration other than cash.
(B) For cash.
(A) Issue of shares for consideration another than cash :
Sometimes shares are issued to the promoters of the company in lieu of the services given by them during the incorporation of the company.
The issue price of these shares is normally debited to Goodwill A/c’ and journal entry is build as follows :
Goodwill A/c To Share Capital A/C
In case a company does not have enough funds for the purchase of fixed assets or for payment to creditors it may of fer and allot its shares to vendors/creditors in lieu of cash. Any alert of shares against which cash isn't yo be received is called ‘issue of shares for consideration other than cash’. For example building is purchased and payment is made by issuing shares.In case of purchase of assets like building, machinery,stock materials etc. the following journal entry is made.
1. On Receipt of Application Money Bank A/c Dr
To Share Application A/c
(Application money received on ....shares of Rs...each)
2. On transferring the Application Money Share Application A/c Dr
To Share Capital A/c (Application money transferred to share capital A/c)
(B) Issue of Shares for cash :
Generally, shares are issued for cash.The company may call the share money either in one installment or in more installments. But company always collects this money by its bankers.
(i) Receipt of share money in one installment :
The company may receive the share money in one installment with any application. In this case the following number of journal entries are made in the books of the company.
(1) On Receipt of Application Money Bank A/c Dr
To Share Application
A/c(Application money received on ....shares of Rs...each)
(2) On transferring the Application Money Share Application A/c Dr
To Share Capital A/c
(Application money transferred to share capital A/c)
If you want to more information regarding the stock tips and many other tips like Equity tips, commodity Tips and many other combo pack call @ 8109999233 or fill form http://equityresearchlab.com/Freetrial.phps
The Epic Research services are very fast, accurate & reliable, we also provide customer support to our clients for stress-free trading.
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