How would the issue of ordinary shares for cash be entered on a worksheet?
A)Debit Retained earnings and credit Share capital.
B)Debit Share capital and credit Proceeds from issue of ordinary shares.
C)Debit Share capital and credit Retained earnings.
D)Debit Proceeds from issue of ordinary shares and credit Share capital.

Question

Quizplus · Accepted Answer

When ordinary shares are issued for cash, the cash received is debited to the "Proceeds from issue of ordinary shares" account, and the "Share capital" account is credited to reflect the increase in equity.

How Would the Issue of Ordinary Shares for Cash Be