00:01
Hello students, here is a question.
00:01
Let us discuss the answer for this.
00:04
If stock is issued for less than the par value, so it means for the first one, there are six sub questions.
00:09
So for the first it is if stock is issued for less than the par value, so it means the company is receiving, the company is receiving less money than stated value of stock.
00:36
And the second is the difference between the par value and the actual amount received is called as par, paid in capital in excess of par, paid in capital in excess of.
00:54
And the third is since the company is receiving less money than the par value, so the account paid in capital in excess of par.
01:02
So, it means is credited to, is credited to reflect the increase in equality, the increase in equity.
01:18
And the fourth is if there is a debit balance in an account paid in capital excess of a par will be, it means that the company has previously recorded, has previously recorded more expenses than, more expenses than revenue related, than revenue related to insurance, revenue related to insurance of stock.
02:02
In this case, the account is debited to reduce the debit balance and increase the equity...