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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
What else can I help you with?
What is the meaning of issues of shares at premium?
When shares are issued at value which is more than face value then it is called shares issued at premium.
What is the share premium?
When shares are issued at price which is more than face value then issuance of shares is called issued at premium and that excess amount above face value is called share premium.
Why are shares issued at a premium?
Well the company wants to profit. And issuing shares at premium provides capital to the company without changing its equity capital.
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 double entry for issue of shares?
The double entry for the issue of shares involves debiting the cash or bank account and crediting the share capital account. If shares are issued at a premium, the premium amount is credited to a separate account, often called the share premium account. This reflects the increase in equity and the cash inflow from shareholders.
What is the meaning of issues of shares at premium?
When shares are issued at value which is more than face value then it is called shares issued at premium.
What is shares premium?
When shares are issued at price which is more than face value then issuance of shares is called issued at premium and that excess amount above face value is called share premium.
What is the share premium?
When shares are issued at price which is more than face value then issuance of shares is called issued at premium and that excess amount above face value is called share premium.
Can preference shares be issued at premium?
Yes, preference shares can be issued at a premium. When issued at a premium, the amount paid above the nominal or par value is recorded as a premium on preference shares. This practice allows companies to raise additional capital beyond the face value of the shares, often reflecting higher demand or perceived value. However, the terms of issuance, including any premiums, must comply with relevant regulations and company policies.
Why are shares issued at a premium?
Well the company wants to profit. And issuing shares at premium provides capital to the company without changing its equity capital.
What do you understand by issue of shares at premium par discount?
If a share has a nominal face value of say $10.00 then if issued at less than $10.00, is said to issued at a discount If issued at $10.00, then issued at par. If issued at more than $10.00 is issued at a premium.
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 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 double entry for issue of shares?
The double entry for the issue of shares involves debiting the cash or bank account and crediting the share capital account. If shares are issued at a premium, the premium amount is credited to a separate account, often called the share premium account. This reflects the increase in equity and the cash inflow from shareholders.
Can issued shares be split?
This is done, usually, only by the company that issued the shares.
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
Treasury stock plus outstanding shares would be?
Issued Shares Authorized Shares = Issued Shares (sold to investors) + Unissued Shares Issued Shares = Outstanding Stock (held by investors) + Treasury Stock (stock bought back by company)
