when shares issued are paid for, accounting entry required is

When shares issued are paid for, the accounting entry required is to debit bank or cash account and credit share capital and/or premium account. When a company issues shares, it receives money from the shareholders in exchange for a portion of ownership in the company. This money is recorded in the company's bank account or cash account. The accounting entry for this transaction involves a debit to the bank or cash account, which increases the company's assets, and a credit to the share capital and/or premium account, which increases the company's equity. Share capital refers to the nominal value of the shares issued, while premium account refers to the amount received in excess of the nominal value of the shares. For example, if a company issues 1,000 shares at a nominal value of $1 per share, and sells them for $5 per share, the total amount received would be $5,000. The accounting entry would be a debit of $5,000 to the bank or cash account, and a credit of $1,000 to the share capital account and a credit of $4,000 to the share premium account. Therefore, the correct answer is to debit bank or cash account and credit share capital and/or premium account.