Accounting (AS)·Company accounts · NSSCAS 2.3.2
Issuing shares: journal & ledger entries
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When a company needs money to grow, it can sell new shares to investors. In this lesson you learn to record a share issue at par and at a premium — the general journal entry, the ledger accounts, and the effect on the statement of financial position. Company accounts appear every year in Paper 1, and share-issue entries are marks you can bank.
What you'll learn in this lesson
By the end you should be able to (NSSCAS Accounting (AS) 2.3.2):
- calculate and record the entries which arise from the issue of shares fully paid at par or at a premium including: general journal, general ledger
- show the effect of the issue of shares in the financial statements
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