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I understand that when we have a right to issue shares, it means that asset will increase. So, how about the investment? Is issued share effective to the amount of investment?
What you mean by saying that ‘the asset will increase’? Which asset?
If you are talking about a rights issue of shares, then this is an issue of new shares to existing shareholders. When the shares are issued, the entry is to debit cash and credit share capital.
I do suggest that you watch the free lecture on company accounts.
Yes, i mean like what you say is that when the share are issued, the entry is to debit cash and credit capital.
Anyway, thanks for your help.
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