A · Supplemental Illustration Center
Online-exclusive visual guides
1. Share taxonomy — one chart to rule them out
| Ordinary shares | Preference shares | |
|---|---|---|
| Voting | Yes — control of the corporation | Usually none / limited |
| Dividends | After preference holders | Priority, often at a fixed rate |
| Liquidation | Last in line (residual) | Ahead of ordinary |
| Par requirement | Par or no-par | Must have par value (cannot be no-par) |
No-par floor: no-par shares still cannot be issued below ₱5.00 (Sec. 6, RA 11232) — and banks, trust, insurance, pre-need, and public utility companies may not issue no-par shares at all.
2. Where each peso lands — anatomy of an issuance
Issue 10,000 shares, ₱10 par, at ₱14:
₱100,000
10,000 × ₱10 par → Share Capital — Ordinary (the legal capital, locked in).
₱40,000
10,000 × ₱4 excess → Share Premium — contributed capital above par; NOT income, NOT retained earnings.
Entry
Dr Cash 140,000 · Cr Share Capital 100,000 · Cr Share Premium 40,000
3. Subscription & treasury — the two two-step dances
Subscription (sell now, collect later)
On subscription
Dr Subscription Receivable · Cr Subscribed Share Capital (+ Premium at the agreed price)
On full payment
Dr Cash · Cr Subscription Receivable, then Dr Subscribed Share Capital · Cr Share Capital — certificates are issued only when FULLY paid.
Treasury shares (buy back your own)
Purchase
Dr Treasury Shares at COST — a deduction from total equity, not an asset.
Reissue
Cr Treasury Shares at cost; any excess → Share Premium–Treasury. Treasury shares are issued but not outstanding — no vote, no dividend.
B · Interactive Workspaces
Practice tools
Tool 1 · Share issuance calculator
Tool 2 · Equity section builder check
Share capital ₱2,000,000 · Subscribed capital ₱300,000 · Subscription receivable ₱120,000 · Share premium ₱450,000 · Retained earnings ₱680,000 · Treasury shares (at cost) ₱150,000. Compute total shareholders' equity, then check. (Treat subscription receivable as a deduction from subscribed capital, per SEC presentation.)
C · Online-Exclusive Assessment