Sources of Finance
Shares Issued and Paid For in Full on Application - At a Premium
Answers
Biz/ed plc issued 25,000 ordinary shares at a price of £12 per share that have a par value of £3.75 per share - that's a share premium of £8.25 per share. Applications were received for exactly 25,000 shares and these were then allocated and issued. Complete the bookkeeping requirements for this share issue.
Biz/ed plc
| Shares issued | 25000 | |
| Par value per share | 3.75 | |
| Issue price | 12 | |
| Received in full on application and allotted immediately | ||
| Bank a/c | Dr | Cr |
| Application and Allotment a/c par value | 93750 | |
| Application and Allotment a/c share premium | 206250 | |
| Balance c/d | 300000 | |
| 300000 | 300000 | |
| Application and Allotment a/c | ||
| Ordinary Share Capital a/c | 93750 | |
| Share Premium a/c | 206250 | |
| Bank a/c | 93750 | |
| Bank a/c | 206250 | |
| 300000 | 93750 | |
| Ordinary Share Capital a/c | ||
| Application and Allotment a/c | 93750 | |
| Share Premium a/c | ||
| Application and Allotment a/c | 206250 | |