Issue Of Shares

Hii sir, I am A Banking Student I wants to Prepared My Assignment on the Issues of Shares Please provide me the Description of this Topic that help me to Complete my Assignment ?

Issued shares are the authorized shares sold to and held by the shareholders of a company, regardless of whether they are insiders, institutional investors or the general public, as shown in the company’s annual report.


Recording Issued Shares
The number of issued shares is recorded on a company’s balance sheet as capital stock. Shares outstanding are listed on the company’s quarterly filings with the Securities and Exchange Commission (SEC).

Comparing Authorized and Issued Shares
Authorized shares are the shares a company’s founders approved in their corporate filing paperwork before startup. Issued shares are the shares the owners decided to exchange for the cash, assets or other value given for founding the company

T o issue shares a company
follows a definite procedure which is controlled and regulated by the
Companies Act and Securities Exchange Board of India (SEBI). There are
different ways of issue of shares which may be:
(A) For consideration other than cash
(B) For cash

(A) Issue of shares for consideration other than cash
l Sometimes shares are issued to the promotors of the company in lie
of the services provided by them during the incorporation of the compnay . The issue price of these shares is normally debited to
‘Goodwill A/c’

In case a company does not have sufficient funds for the purchase of fixed
assets or for payment to creditors it may offer and allot its shares to vendors/
creditors in lieu of cash. Any allotment of shares against which cash is not
to be received is called ‘issue of shares for consideration other than cash’.

Issue of Shares for cash
In general, shares are issued for cash. The company may call the share
money either in one instalment or in two or more instalments. But company
always collects this money through its bankers.


(i) Receipt of share money in one instalment
The company may receive the share money in one instalment along with
application. In this case the following journal entries are made in the books
of the company




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