How would I make accounting entry in the books when I issue share?

aspannu_007 · #1 Apr 12, 2007, 12:17 PM

How would I make accounting entry in the books when I issue shares?
I don't have much experience in this. I have a small business. I issued myself 100 shares for $1 each when stared up my business. That entry was easy DR cash CR common shares. Now I am issuing 100 more shares to my new partner for $10 each. I know the balance of shares should be 100+100=200 in CR and cash should be $100+1,000=1,100 DR but where would I put the difference. and What would I do when I sell these shares?

goldenbutterfly · Apr 12, 2007, 07:12 PM

Quote:

Originally Posted by aspannu_007

How would I make accounting entry in the books when I issue shares?
I don't have much experience in this. I have a small business. I issued myself 100 shares for $1 each when stared up my business. That entry was easy DR cash CR common shares. Now I am issuing 100 more shares to my new partner for $10 each. I know the balance of shares should be 100+100=200 in CR and cash should be $100+1,000=1,100 DR but where would I put the difference. and What would I do when I sell these shares?

dr. cash 1000
cr. common shares 100
cr. additional paid in capital 900



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!