Answered: Q.1 Company offered 10,000 ordinary…

Q.1 Company offered 10,000 ordinary shares of Rs. 10 at Rs. 12. Company received 8,000 shares application. They allotted Shares against application receipt. Prepare Journal entry?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 7EB: Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the...

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

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Q.1 Company offered 10,000 ordinary shares of Rs. 10 at Rs. 12. Company received 8,000 shares application. They allotted
Shares against application receipt.
Prepare Journal entry?

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