A stock's par value is the monetary amount assigned to the share of stock.

The basic meaning of par stock is the amount of stock a business or individual should keep on hand at all times. If your stock amount falls below this par, you should purchase more to keep it at that number.

Par is the value stated on the stock certificate as stated in the articles of incorporation and is many times $.01 or $1.00.

Issuing Par Value Common Stock for Cash

(assume par value is $1) dr. Cash $1.00

cr. Common Stock $1.00

to record issuance of 1 share of $1 par common stock if sold for more than par value (Assuming $5) dr. Cash $5

cr. Common Stock $1

Paid-in Capital in excess of par $4

to record issuance of 1 share of common stock in excess of par.

concept of per stock in hotel industry