Rights Issue — Proceeds Received from Shareholders
Receiving payment from existing shareholders exercising their rights to purchase new shares.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Bank | Asset (+) | 30,000,000.00 | - |
| Share Capital (New Shares at Par) | Equity (+) | - | 10,000,000.00 |
| Share Premium | Equity (+) | - | 20,000,000.00 |
💡 Accountant's Note
Rights issue proceeds are the same in structure as a primary share issuance. The key difference is that rights are offered proportionally to existing shareholders, giving them the right to maintain their ownership percentage. Both CET1 components are increased.
Practitioner & Systems Framework
💻 ERP Architecture
Rights issue subscriptions are tracked by the Share Registrar (typically a separate institution in Jordan). Settlement proceeds arrive through the Jordan Clearing and Depository Corporation (CDC). The Finance team posts the capital increase after the subscription period closes and CDC confirms final allocation.
⚠️ Audit Flags
Auditors verify the allotment process was completed within the timeframe specified in the rights issue prospectus. Unsubscribed rights and their treatment (underwriter takeover or cancellation) must be properly accounted for. CBJ and CCD filings must be completed before the capital increase is effective.
📄 Required Documentation
CBJ approval, rights issue prospectus, CDC subscription report, allotment results, share registrar confirmation, CCD filing receipt, and updated share register.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.