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?

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