Issue of Shares is when company offers shares to public or to specific persons to raise capital. Methods: Offer through Prospectus (public issue with detailed disclosure), Private Placement (to specific investors), Rights Issue (to existing shareholders), Bonus Issue (to existing shareholders from reserves). Pricing: Shares can be issued at par (face value), at premium (above par), or at discount (below par, limited by law). Process: Board approval, Shareholder approval (if required), Prospectus/Document preparation, Public/Private offer, Allotment, Calling amounts. Allotment: When company decides to issue shares to applicants. Journal Entry: Debit Bank (on application), Credit Share Application Account; At allotment: Debit Share Application Account, Credit Share Capital (par value) and Securities Premium (premium amount). Calls: Subsequent demands for payment in installments. First Call: Debit Bank, Credit First Call Account; Transfer to Share Capital later. Final Call: Last installment to complete paid-up capital. Over-subscription and Under-subscription: If applications exceed shares (over-subscription), company allots proportionately or rejects applications. Under-subscription may not allow issue to proceed. Refund of Application Money: Money refunded if shares not allotted. Journal Entry: Debit Share Application Account, Credit Bank. Share Certificate: Issued to shareholders as proof of ownership; shows number of shares, folio number, par value. Exam tip: Understand the share issue process step-by-step; master journal entries for applications, allotments, and calls; handle over/under-subscription scenarios; know the role of Securities Premium Account.