Issue of Shares at Par (Accounting Treatment)

Issue of shares at their nominal value is called Issue at Par. The amount of shares is generally divided into a number of instalments. The amount received along with the applications is called application money. Second instalment called Allotment money is called by the company at the time of Allotment of shares. The remaining part of the share money called call money is further divided into one or two calls called first call, second call etc. If there is only one call it is called first and final call otherwise…