Question

A company issued 6000 6% preference shares of ₹ 10 each issued to promoters . pass journal entries.​

Answer 1

Explanation:

Issue of shares to refers to a company offering shares to the public in exchange for capital. It invites the applications from the public. After obtaining the minimum subscription it allots the shares to the applicants. On allotment, the title on the shares passes to the shareholders. However, in some cases, a company may also issue the shares for consideration other than cash to the promoters as they promote the company.