Accounting entry for issue of shares at lower consideration than paid up capital


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Mar 12, 2021
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Hi,

What is the accounting entry for issue of shares at lower consideration than the paid up capital?
Eg 1 mil shares @ price of $1 = $1 mil share capital (Cr Share Capital $1mil), consideration received is $500K (Dr Cash $500K), what account should I debit to for the balance $500K?
 
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Joined
Mar 14, 2021
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This is ideally called issue of shares at discount. You record the balance of $ 500k as Discount on Issue of Shares. However, I'm not really sure how practical it is in the prevalent times.
 

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