One.
Debit Cash / bank / goods Credit Capital account
Treasury stock is contra to share capital account as it is those shares which company purchase from own capital to reduce the share capital amount.
Treasury stock is contra account for share capital account so as share capital has credit balance treasury stock has debit balance and shown as an asset under balance sheet.
additional paid in capital
[Debit] Stock account xxxx [Credit] Capital xxxx
One.
Capital stock is considered a permanent account because it reflects the ownership stake in a company and is not closed at the end of an accounting period like temporary accounts. It remains on the balance sheet to show the total amount of capital contributed by shareholders.
Personal account
capital transaction
Debit Cash / bank / goods Credit Capital account
Treasury stock is contra to share capital account as it is those shares which company purchase from own capital to reduce the share capital amount.
The subscribed capital stock account is only issued when fully paid. The initial entry will require a debit to cash and subcription receivable account with a corresponding credit to 'Subcribed Capital Stock' and APIC (add'l paid in capital) if issued above par. Now, when it is presented in the financial statements, the subcribed capital stock will be added to the common stock issued and fully paid. However, the account will also be reduced by the subscription receivable balance. Take note: When the subscription receivable is expected to be paid in the current period, it will presented under trade and other receivables, as a part of current assets.
Treasury stock is contra account for share capital account so as share capital has credit balance treasury stock has debit balance and shown as an asset under balance sheet.
Yes capital stock has credit balance as a normal balance so increase is also has credit balance.
10
Capital is an equity account and liability of business to payback as it is the amount invested by owners in business.