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Share premium refers to the amount received by a company over and above the par value of its shares when they are issued. It represents a form of equity financing and is recorded in the shareholders' equity section of the balance sheet. Share premium is not considered income or expense; rather, it reflects the valuation investors place on the company's shares beyond their nominal value. Changes in share premium can occur during share issuance or buybacks but do not affect the company’s profit and loss statement.
What else can I help you with?
When a bond is bought at a premium do you recognize income or expense?
You have a high probability of creating a principle loss.
Is purchases an income or an expense?
it is neither an expense nor an income
What is the difference in percentage of income versus percentage of expense?
Income = expense + savings&investments Income = expense + savings&investments
Is purchase returns an expense or income?
it is neither an expense nor an income
Is directors remuneration an expense or an income?
Its an expense
When a bond is bought at a premium do you recognize income or expense?
You have a high probability of creating a principle loss.
What is premium expense charges?
exspense charges that are premium.
Is purchases an income or an expense?
it is neither an expense nor an income
What is the difference in percentage of income versus percentage of expense?
Income = expense + savings&investments Income = expense + savings&investments
Is purchase returns an expense or income?
it is neither an expense nor an income
Is interest on fixed deposit an expense or income?
To the depositor, it is an income but to the bank or institution providing the fixed deposit as a product, it is an expense.
Is directors remuneration an expense or an income?
Its an expense
Is director remuneration is income or expense?
Its an expense
Where does interest expense in the income statement?
Interest expense is shown at debit side of income statement because it is an expense for business.
What is the journal entry for share premium?
debit cashcredit share capitalcredit share premium
What is a contra expense?
A reduction of an expense on the income statement.
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
