We have a Share option reserve at the end of 3rd year of $300,000 for 30,000 shares and the excise price of $20/share

Question

Can anybody provide Journal Enrties at the time of exercise of share options.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN · Answer

DR Share Option Reserve:3,00,000 >>>>>>>>>>>>@ $10 PER SHARE

DR Bank A/c: 6,00,000 >>>>>>>>>>>>@ $20 PER SHARE

CR Share capital A/c 3,00,000 >>>>>@ $10 PER SHARE

CR SHARE PREMIUM A/C 6,00,000 >>>>>@ $20 PER SHARE

Deleted user · Answer

The journal entry will be as follows :

Share Option Reserve Dr.300,000/-

Paid-up Share Captial Cr.300,000/-