Help

 Please explain me the entries of issuing shares with reasons

1.  Bank a/c   Dr. 

            To Equity Share Application A/c

 Here bank a/c is debited beacuse cah is bank is asset and when asset increses we debit it but what is the rule behind crediting the Equity share application a/c and what is its nature?

  Equity Share Application A/c  Dr.

         To Share Captial A/c

Here we are crediting Share capital a/c according to the rule credit increase in capital but what is the rule behind Debiting  the Equity share application a/c  ?

Replies (2)
  • When the shares which were earlier issued at premium are reissued, and the share premium amount is not collected from the earlier shareholder, then this account is required to be debited.
  • When shares issued at premium are reissued and the share premium amount is already collected, then the share premium account need not be
  • After reissue of forfeited shares, for transferring the unutilised portion of share forfeiture account, this account is credited.
  • The amount of face value of share capital that is reserved for collecting at the time of winding up of a company is called:
  • After reissue of forfeited shares, the balance left over in the share forfeiture account is transferred to this account
  • When shares which were earlier issued at discount are reissued, then at the time of reissue, the discount account is
  • For transferring the excess application money to allotment in the case of over subscripttion this account is credited
  • At the time of forfeiture, for cancelling the calls in arrears, the calls in arrears account is requierd to be :
  • When forfeited shares are reissued at a discount, the amount of discount given should not exceed the amount
  • For the purpose of refunding the excess application money to the applicants, this account is credited.

 Not satisfied with answer

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
ARTICLESHIP 10 August 2026
Article Assistant

Suraj Garg and Associates

New Delhi

CA Inter

View Details
Company
11 August 2026
Manager / Senior Manager - Statutory Audit

CommerceCareer

New Delhi

CA

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
14 August 2026
Semi Qualified

Goyanka & Associates

New Delhi

CA Inter

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details