When Par Value Share Is Issued, Share Capital Is Credited

question 123

True/False

When par value share is issued, share capital is credited with the par value of the shares issued, regardless of whether the issuance price is equal to par, more than par, or less than par.

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Definitions:

General Journal

A comprehensive accounting ledger that records all financial transactions of a company in chronological order before they are transferred to specific accounts.

General Ledger

A collection of a company's financial accounts, where transactions are recorded in separate accounts to maintain a comprehensive financial record.

Explanation Column

A column in accounting ledgers or financial reports where details are provided to explain the nature or reason for a transaction.

Computerized Accounting System

A software-based method that provides automatic bookkeeping and accounting for business transactions, improving accuracy and efficiency over manual methods.