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Share capital debit or credit journal entry

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Hi,

When share capital increases after a company issues shares to applicants, do we debit or credit share capital in the journal entry? Do we credit it? Just wanted to make sure. Thanks.

Kelly

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By johngroganjga
17th Aug 2017 06:26

Think about both sides of the entry, not just one of them in isolation.

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By Richard Willis
17th Aug 2017 10:32

Dr Cash with consideration
Cr Share Cap. with shares at quoted value.
Cr Share Premium a/c with difference
(Unless the rules have changed; not practised for a while!)

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