how do I find whether the shares are issued at par or at lump sum and also in debentures ?
Dear Student,
Issue of Shares/debentures at par & at lump sum are two different situations;
When we say that the total amount for a share is called up all together then it is termed as shares issued at lump-sum and when we say that shares are issued at the same value as its face value then it is termed as issued at par; We can issue a share at par and at the same time for lump-sum amount; say for example, When A Ltd. issues 1,000 shares @ Rs 10 each @ Rs 12 and calls up the complete amount on application then it is termed as shares issued at lump-sum but not at par but at premium as the issue value is not equal to face value of share;
On the contrary if shares are issued @ Rs 10 each and called complete amount on application then it is termed as issued at par & at lump-sum;
Hope this clears your doubt!!!!
Keep posting!!
Regards,
Issue of Shares/debentures at par & at lump sum are two different situations;
When we say that the total amount for a share is called up all together then it is termed as shares issued at lump-sum and when we say that shares are issued at the same value as its face value then it is termed as issued at par; We can issue a share at par and at the same time for lump-sum amount; say for example, When A Ltd. issues 1,000 shares @ Rs 10 each @ Rs 12 and calls up the complete amount on application then it is termed as shares issued at lump-sum but not at par but at premium as the issue value is not equal to face value of share;
On the contrary if shares are issued @ Rs 10 each and called complete amount on application then it is termed as issued at par & at lump-sum;
Hope this clears your doubt!!!!
Keep posting!!
Regards,