ABC , a limited liability company, issued 500,000 ordinary shares of 20 cents each at a price of $1.3 per share, all received in cash.
What should be the accounting entries to record this issue?
Answer
$
Debit: cash ( 500,000 x 1.3) ………………650,000
Credit: share capital (500,000 x 0.2) ……………….100,000
Credit : share premium ( 500,000 x 1.1) ……………550,000