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wizardman42
Aug 10, 2013, 05:17 PM
If I sold stock shares from my company, how should I register the money from that sell in my books? As cash and capital stock, earnings, or owners' equity account?

Ghaleb Mohd
Aug 12, 2013, 12:22 AM
when the company sells the Stocks, the company is going to receive cash and the buyer of the stocks is deemed as Shareholder that has a right to receive dividend.

At the date of transaction the company is going to pass the following entry to reflect the transaction in the books of accounts.


Dr. Cash A/c XX
Cr. Common Share XX

in case that the market price per share is above of par value , the acess amount should be treated as paid - in capital .

Dr. Cash A/c XX
Cr. Share Capital A/c XX
Cr. Paid up in Capital A/c XX


@_*