Issue of Shares
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Accounting for Companies Limited by Shares
MS: Terbitan Syer · EN: Issue of Shares · ZH: 股份发行
Meaning
The issue of shares is the process of offering and selling shares to the public or investors to raise capital for the company. Through this process the company receives cash in exchange for the shares given. Shares may be issued at par value or at a premium price.
Example
For example, Harmoni Berhad issues 60,000 ordinary shares of RM1 at par value and receives full payment. Entry: Debit Bank RM60,000, Credit Ordinary Share Capital RM60,000, showing the capital successfully raised through that share issue.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5