27 December 2010
hi friends, i want issue of shares, allotment , first and final call journal entries with explanation(golden rules) .. explain those journal entries (why its debited and credited) plzzzzzzzzzzzzzzzzzz.
A credit increases the liability and debit decreases the liability.
A debit increases the cash.
All money received by a COMPANY is always its liability, whether it is held as application, allotment, first call or second call. All you do is increase one type of liability and decrease another.
CAclubindia
