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What is the normal balance of a additional paid-in capital account?
Additional Paid-in Capital is a normal credit balance account.
What type of account is paid-in capital in excess of par?
additional paid in capital
What type of account is paid in capital in excess of par?
Paid in capital in excess of par is called "Share premium account"
Is paid in capital a debit or credit account?
Paid in capital is liability for business and like all liabilities it also has credit balance as normal balance.
Is share premium paid part of paid up capital?
Yes share premium paid is part of paid up capital and shown separately as share premium account in equity section of balance sheet.
What is the normal balance of a additional paid-in capital account?
Additional Paid-in Capital is a normal credit balance account.
What type of account is paid-in capital in excess of par?
additional paid in capital
What type of account is paid in capital in excess of par?
Paid in capital in excess of par is called "Share premium account"
Is paid in capital a debit or credit account?
Paid in capital is liability for business and like all liabilities it also has credit balance as normal balance.
What is the journal entry to increase paid up capital?
debit cash /bankcredit capital account
Does a credit to accounts payable represent cash paid to creditors?
No actually... Cash paid to credits should credit cash account and debit payable account
Is share premium paid part of paid up capital?
Yes share premium paid is part of paid up capital and shown separately as share premium account in equity section of balance sheet.
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
What entity would have a paid-in capital in excess account in the equity section of the balance sheet?
corporation
Can additional paid-in capital have a debit balance?
When there is loss in the business the capital of partner can be in negative. Then there is need for addition of capital to run the business and capital brought can still be not enough to make it in credit. Hence the capital will still show a debit balance. However, Additional Paid-In Capital as an account has meaning only for the corporate form of business. Any amount paid by an investor for stock in excess of the stock's par value is recorded as Additional Paid-In Capital. Additional investments by partners may be recorded as contributions in the current period, but are then, like partner draws, closed to the partner's capital account.
Is subscribed capital stock added or deducted on capital stock?
The subscribed capital stock account is only issued when fully paid. The initial entry will require a debit to cash and subcription receivable account with a corresponding credit to 'Subcribed Capital Stock' and APIC (add'l paid in capital) if issued above par. Now, when it is presented in the financial statements, the subcribed capital stock will be added to the common stock issued and fully paid. However, the account will also be reduced by the subscription receivable balance. Take note: When the subscription receivable is expected to be paid in the current period, it will presented under trade and other receivables, as a part of current assets.
What does paid-in capital represent?
It represents that much of amount is invested by investors or shareholders in business and which is refundable by business at time of liquidation.
