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What Share premium?
the amount payable for a share above its nominal value. Most shares are issued at a premium to their nominal value. Share premiums are credited to the company's share premium account.
What is the effect of a bonus issue on the share capital and share premium account?
Bonus shares increases the share capital while reduces the share premium account because amount of share premium is used to issue bonus shares.
What is Issue of shares at premium?
Issue of share at premium mean when the share are issue at more than the price of the face value of the share, then it is said to be issue of share at premium. mean: the face value is Rs.10 and the share issue at Rs.12, then the extra Rs.2 is known as the amount of premium...
Is share premium paid part of paid up capital?
Yes share premium paid is part of paid up capital and shown separately as share premium account in equity section of balance sheet.
How share premium can be used?
check your answer
What is the journal entry for share premium?
debit cashcredit share capitalcredit share premium
How is share premium entered into the books?
Debit Cash accountCredit share capitalcredit share premium accoun
What are the advantages of a share premium?
The most obvious is a reduction of the cost of your premium. Depending om how U decide to divide the premium , you could end Up paying up to 99.99% less than an individual member is now paying .
Issuing share at premium?
In case the shares have been issued at a premium and the amount of premium has been received then at the time of forfeiture of such share (a) share premium account should be debited (b) share premium account should be credited (c) share premium account should be neither debited nor credited (d) none of these
What Share premium?
the amount payable for a share above its nominal value. Most shares are issued at a premium to their nominal value. Share premiums are credited to the company's share premium account.
Is Share premium as capital or revenue reserve?
Share Premium is a Capital Reserve. They cannot pay dividends because share premium is a non trading activity.
What is the effect of a bonus issue on the share capital and share premium account?
Bonus shares increases the share capital while reduces the share premium account because amount of share premium is used to issue bonus shares.
Can premium be written off to the share premium account?
no
If forfeiture share is reissued at premium then why security premium is credited?
in case the shares have been issued at a premium and the amount of premium has been received then at the time of forfeiture of such share
What is Issue of shares at premium?
Issue of share at premium mean when the share are issue at more than the price of the face value of the share, then it is said to be issue of share at premium. mean: the face value is Rs.10 and the share issue at Rs.12, then the extra Rs.2 is known as the amount of premium...
When calculating the cost of capital how should the share premium be calculated?
share premium could be calculated as by getting the difference between the market price of the share and its nominal price. Formula: Share Premium= Market Price - Nominal Price
What are the uses of share premium?
Share premium is used for many purposes and 1 of them is redemption of preference shares and debentures
