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Share premium account is that amount in which amount in excess of par value of shares is received while share application accounts records all money received from potential investors in process of share issue.
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How do you prepare a double entry 4 a share capital and share premium account?
1. When cash received[Debit] Bank/Cash xxxx[Credit] Share application xxxxwhen shares allotted[Debit] Share application xxxx[Credit] Share capital (face value) xxxx[Credit] Share premium [value above face] xxxx
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 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 journal entry for Share capital and Paid up Capital?
[Debit] Cash account xxxxx [Credit] Share application account xxxxx Entry 2 [Debit] Share Application account xxxxx [Credit] Share Capital Account xxxxx
Why shares issued 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
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
Can premium be written off to the share premium account?
no
How do you prepare a double entry 4 a share capital and share premium account?
1. When cash received[Debit] Bank/Cash xxxx[Credit] Share application xxxxwhen shares allotted[Debit] Share application xxxx[Credit] Share capital (face value) xxxx[Credit] Share premium [value above face] xxxx
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 share premium reserve?
Share premium occurs when a company sells its shares at a price higher than face value, meaning it earned more money than the share is stated to be worth. This excess money is held in reserve in a share premium account, and it can be used to pay equity related expenses, such as underwriting, or to issue bonus shares to stockholders.
What is a share in financial accounting and what are the journal entries for the shares?
When applications received Debit Cash account Credit Share applicant account [debit] Share applicant account [Credit] Share application account When share allocated [Debit] Share application account [Credit] share capital account
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 journal entry for Share capital and Paid up Capital?
[Debit] Cash account xxxxx [Credit] Share application account xxxxx Entry 2 [Debit] Share Application account xxxxx [Credit] Share Capital Account xxxxx
How do you get rapid share premium account for free?
log on to: http://lookpremiums.blogspot.com/ for free rapidshare, megaupload nad hotfile premium account.....!
Why shares issued 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
Is share application a personal account or not?
yes
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.
