Possibilities after Issuing Shares: Oversubscription, Forfeiture, and Accounting Entries

The video tutorial covers the process of issuing shares, including understanding authorized, issued, and applied shares. It explains oversubscription and the options available to companies, such as rejecting applications or allotting shares on a pro-rata basis. The tutorial also details the journal entries required for share transactions, handling calls, discounts, and forfeiture of shares. Finally, it discusses the reissue of shares and how to present these transactions in the balance sheet, providing tips for accurate accounting.

What happens to the balance in the share application account after refunds?

How is the discount on shares accounted for during the first call?

What is the significance of the capital reserve account in the context of forfeited shares?

How do you verify the balance sheet items related to share capital?