Subscriptions receivable 880,000 (40,000 shares x each) Note that section 3251. 10 of the cica handbook, Part ii requires that share purchase loans receivables must be shown as contra equity unless the borrower is fully responsible for declines in value of the shares and there is reasonable assurance that the full amounts will be collected. In the united states, the sec requires the. Subscriptions receivable account to be presented as a reduction of equity. Note that in some jurisdictions, the limit to the liability of the subscriber in case of corporate failure is the subscription price, rather than the amount paid up at the time of the failure. Exercise 15-3 (10-15 minutes) (a: cash [(6,000 x ) ,000] 178,000. 178,000: land (3,750 x ) 120,000. Note: the market value of the share (,000) is used to value the exchange because it is a more objective measure than the appraised value of the land (,000).