01-19-2005, 06:30 PM
Hi Shahid,
I have studied "Rights issue" from Pakistani Author's books and the foreign one also...there is a great difference in the accounting entries as i have mentioned in my post "See the entires..."
In my opnion this is the correct entry(the foreign one)
DrCash
Crshare Capital
Crshare premium
Regarding ur query...
If the existing shareholders dont want to exercise their rights i.e, if they dont want to have additional shares then they can surrender their rights...and the company then can issue these shares to new share holders...
Ace
I have studied "Rights issue" from Pakistani Author's books and the foreign one also...there is a great difference in the accounting entries as i have mentioned in my post "See the entires..."
In my opnion this is the correct entry(the foreign one)
DrCash
Crshare Capital
Crshare premium
Regarding ur query...
If the existing shareholders dont want to exercise their rights i.e, if they dont want to have additional shares then they can surrender their rights...and the company then can issue these shares to new share holders...
Ace
