Banking

Rights Issue — Proceeds from Existing Shareholders

Existing shareholders exercise their rights to purchase new shares at a discount.

Account NameTypeDebit ($)Credit ($)
Cash in BankAsset (+)30,000,000.00-
Common Stock (New Shares — Par)Equity (+)-3,000,000.00
Share Premium / APIC (Excess over Par)Equity (+)-27,000,000.00

💡 Accountant's Note

Rights issues are the most common way for Jordanian banks to raise capital. Existing shareholders maintain their proportional ownership. The subscription price is typically set at a discount to market price to incentivize take-up.

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