Valuation Concept

MEMORANDUM METHOD
Date PARTICULARS DR. CR.

1 The company was authorized to issue Share

Capital of 4,000,000 divided into 40,000 shares
at PAR Value of 100 per share.
2 Subscription Receivable 100k x100 1,000,000
Subscribed Share Capital 1,000,000
To record receipt of Subscription @ PAR Value
3 Cash (25% x 1,000,000) 250,000
Subscription Receivable 250,000
To record partial collection of subscription
4 Cash (75% x 1,000,000) 750,000
Subscription Receivable 750,000
To record full collection of subscription.
5 Subscribed Share Capital (6,000×100) 600,000
Share Capital 600,000
To record issuance of share certificates.
6 Cash(5,000×100) 500,000
Share Capital 500,000
To record receipt for subscription.

Financial Statements
Statement of Financial Position
Shareholders Equity
As of October 27, 201
Memorandum Method

Share Capital 1,100,000

Subscribed Share Capital 400,000
Subscription Receivable -
Share Premium -
Total Shareholders Equity 1,500,000