Limited Company Formats (AS Level Only): Rights Issue Journal Entry Format (Copy)
Rights Issue Journal Entry Format
Standard Rights Issue Journal Entry (Exam-Preferred)
| Date | Particulars | Dr (Amount) | Cr (Amount) |
|---|---|---|---|
| Bank (Dr) | xxxx | ||
| Ordinary Share Capital Account (Cr) | xxxx | ||
| Share Premium Account (Cr) | xxxx | ||
| (Being Rights Issue Of Ordinary Shares At A Premium) |
- Rights Issue = Shares Offered To Existing Shareholders At A Price
- Cash Is Received
- Nominal Value Credited To Ordinary Share Capital
- Excess Over Nominal Credited To Share Premium
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Rights Issue At Par (No Premium)
| Date | Particulars | Dr (Amount) | Cr (Amount) |
|---|---|---|---|
| Bank (Dr) | xxxx | ||
| Ordinary Share Capital Account (Cr) | xxxx | ||
| (Being Rights Issue Of Ordinary Shares At Par) |
- Issue Price = Nominal Value
- No Share Premium Created
Rights Issue At Discount (AS Level Note)
| Date | Particulars | Dr (Amount) | Cr (Amount) |
|---|---|---|---|
| Bank (Dr) | xxxx | ||
| Ordinary Share Capital Account (Cr) | xxxx | ||
| Discount On Issue Of Shares (Dr) | xxxx | ||
| (Being Rights Issue Of Ordinary Shares At A Discount) |
- Discount On Issue Treated Separately
- Rarely Tested But Format Awareness Required
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Rights Issue Journal Entry Without Date Column (Accepted)
| Particulars | Dr (Amount) | Cr (Amount) |
|---|---|---|
| Bank (Dr) | xxxx | |
| Ordinary Share Capital (Cr) | xxxx | |
| Share Premium (Cr) | xxxx | |
| (Being Rights Issue Of Ordinary Shares) |
- Used In Short Questions
- Clear Identification Of Accounts Required
Rights Issue Amount Working (Linked Format)
Rights Issue Calculation
| Details | Amount |
|---|---|
| Existing Ordinary Shares | xxxx |
| Rights Ratio | x : x |
| New Shares Issued | xxxx |
| Issue Price Per Share | $x |
| Total Cash Received | xxxx |
| Nominal Value Per Share | $x |
| Share Premium Per Share | $x |
- Total Cash Received Debited To Bank
- Nominal Value Credited To Share Capital
- Balance Credited To Share Premium
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Items Affected By Rights Issue
- Bank ↑
- Ordinary Share Capital ↑
- Share Premium ↑ (If Issued Above Par)
- Total Equity ↑
Items Never Affected By Rights Issue
- Retained Earnings
- Profit Or Loss
- Bonus Reserve
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Presentation Rules For Rights Issue Journal Entries (Exam Scoring)
- Always Debit Bank
- Use Nominal Value For Share Capital
- Separate Share Premium Clearly
- Clear Narration Mandatory
Compact Rights Issue Journal Entry (Emergency)
Bank Dr xxxx
Ordinary Share Capital Cr xxxx
Share Premium Cr xxxx
(Being Rights Issue Of Ordinary Shares)
One-Glance Exam Template
Rights Issue
Cash Comes In
Split Nominal And Premium
Credit Equity