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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.
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What is the journal entry for share premium?
debit cashcredit share capitalcredit share premium
What are the advantages and disadvantages of premium pricing strategy?
what is premium pricing strategy
The difference between primary and secondary reserves?
what are the diffrence between primary reserve and secondary reserve?
What does premium listing mean in real estate?
A premium listing is an enhanced advert on the Rightmove site.
Absolute market share?
Absolute Share is per capita income.Relative Share is the ratio of the per capita income to the rest of society.
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.
Is share premium a capital reserve?
yes
Can revaluation reserve be use for bonus issue?
Yes it can use any of the capital reserves for the purpose, like Share Premium Account, Capital Redemption Reserve & Revaluation Reserve...
What is security premium reserve?
Securities premium reserve is the amount when securities are issued at premium that is more than their face value.
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
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.
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...
