When you credit common shares, what would you debit?
submitted by Jaws

snow

If you're crediting common shares, it usually means the company is issuing new shares. In that case, you'd debit the account where the value is coming from, like cash or maybe a receivable if someone is paying with something other than cash.

jelly

Crediting common shares means you're increasing the company's equity. To balance that out, you'd debit an asset account, often cash, because you're getting paid for the shares.

smellums

When you credit common shares, you'd debit the cash or other asset account received in exchange for the shares. So, if you issued shares for cash, you'd debit cash.