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What is the journal entry for Share capital and Paid up Capital?
[Debit] Cash account xxxxx [Credit] Share application account xxxxx Entry 2 [Debit] Share Application account xxxxx [Credit] Share Capital Account xxxxx
How do you account for Issued Share Capital?
[Debit] Cash / bank xxxx [Credit] Share capital account xxxx
What is the effect of a bonus issue on the share capital and share premium account?
Bonus shares increases the share capital while reduces the share premium account because amount of share premium is used to issue bonus shares.
What is a share in financial accounting and what are the journal entries for the shares?
When applications received Debit Cash account Credit Share applicant account [debit] Share applicant account [Credit] Share application account When share allocated [Debit] Share application account [Credit] share capital account
How do you make journal entries in share capital transactions?
Debit Cash / bankCredit share application accountDebit Share Application accountcredit share capital account
What type of account is paid in capital in excess of par?
Paid in capital in excess of par is called "Share premium account"
What is the nature of share application account?
It is long term fund, commonly known as Capital account.
How is drawings treated in the balance sheet?
Share Capital is the amount invested by the owners of business into the business.Drawings is the amount withdrawn by the owners of business.So it is not surprise to show the drawings from deduction from the share capital because net effect is the reduction of the share capital of the owners of the business.
Transaction for issuing shares in exchange for assets?
[Debit] Assets account [Credit] Share capital account
Is treasury stock included in common equity?
Treasury stock is contra to share capital account as it is those shares which company purchase from own capital to reduce the share capital amount.
Are treasury stocks a debit or credit?
Treasury stock is contra account for share capital account so as share capital has credit balance treasury stock has debit balance and shown as an asset under balance sheet.
What is the accounting entry to reduce a reserve account?
Reserve account can be reduce as follows: [Debit] Reserve account xxxx [Credit] Share capital account xxxx
