Q: What is the correct double entry accounting for shares, dividends, bonus issues etc..?
13 September 2012
Perhaps the easiest way to start is to take a simple example of shares issued at par, for example, 1,000 ordinary shares with a nominal value of £5 each.
Perhaps the easiest way to start is to take a simple example of shares issued at par, for example, 1,000 ordinary shares with a nominal value of £5 each. In this case, three accounts are involved: the Bank Account; the Ordinary Share Applicants Account; and the Ordinary Share Capital Account. The entries are as in the table below.
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