Issue of Shares | Application & Allotment | Journal Entries
In this lesson, we explain the basics of the issue of shares, the difference between authorized share capital and issued share capital, and to whom the shares may be issued. We also explain and go through the steps to follow when doing journal entries for the issue of shares. We go through examples of doing journal entries for oversubscription of shares and undersubscription of shares.
We show how to account for the application and allotment of shares (Ordinary shares and preference shares. We also show the journal entries for underwrites and share issue costs.
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