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Bonus shares increases the share capital while reduces the share premium account because amount of share premium is used to issue bonus shares.
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.
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
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.
Yes share premium paid is part of paid up capital and shown separately as share premium account in equity section of balance sheet.
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
no
Bonus shares increases the share capital while reduces the share premium account because amount of share premium is used to issue bonus shares.
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.
Share premium is used for many purposes and 1 of them is redemption of preference shares and debentures
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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
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.
Yes share premium paid is part of paid up capital and shown separately as share premium account in equity section of balance sheet.
Paid in capital in excess of par is called "Share premium account"
Decrease in share premium account is shown under 'Cash flow from financing' activities as this is related with issuance and buy back of shares
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.