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6 May, 2015 - 17:10

When a company sells its stock directly to investors, a Stock Subscription Receivable account is debited for each sale. A Stock Subscribed account is credited upon the initial offering of the subscription. When a subscription has been paid in full, Stock Subsdcribed account is debited and the appropriate stock account credited. At the same time the stock certificates are issued to shareholders. To keep track of subscription payments a subscribers ledger shows individual accounts. Paper stock certificates are currently phased out and replaced by computerized entries.