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Sources of Finance

Shares Issued and Paid For in Full on Application - At Par

Worked Example

Biz/ed plc issued 10,000 ordinary shares at par for £2 per share. Applications were received for exactly 10,000 shares and these are then allocated and issued. Complete the bookkeeping requirements for this share issue.

Solution

Issue shares at par paid in full on application no premium

Biz/ed plc

Shares issued10000 
Par value per share2 
Received in full on application and allotted immediately 
 
Bank a/cDrCr
Application and Allotment a/c20000 
 
Application and Allotment a/c 
Ordinary Share Capital a/c20000 
Bank a/c 20000
 2000020000
 
Ordinary Share Capital a/c 
Application and Allotment a/c 20000

For you to do

Biz/ed plc issued 25,000 ordinary shares at par for £3.75 per share. Applications were received for exactly 25,000 shares and these are then allocated and issued. Complete the bookkeeping requirements for this share issue.

You can complete this task either by filling in the interactive form below or on paper using the printable worksheet. N.B. Do not insert commas or spaces between your figures in the boxes below.

Biz/ed plc

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