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    aspannu_007's Avatar
    aspannu_007 Posts: 3, Reputation: 1
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    #1

    Apr 12, 2007, 01:17 PM
    How would I make accounting entry in the books when I issue share?
    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's Avatar
    goldenbutterfly Posts: 63, Reputation: 8
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    #2

    Apr 12, 2007, 08:12 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
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