Question

When the equity shares are issued at a price above the

Q: When the equity shares are issued at a price above the face value, the excess price received over th

SharepremiumistheexcessofsharepriceoverthefacevalueoftheshareThisexcessamountisrecordedundertheSharePremiumAccountwhiletheequitycapitalisrecordedatthefacevalueSharepremiumformsapartoftheshareholderequity

face value, the excess price received over the face value of shares, is credited to which of the following account?

A Share capital account

B General Reserve account

C Share Premium account

D Revaluation Account

E Credited to Profit & Loss A/c

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IFSCA Officer Grade A (Assistant Manager)

Question

When the equity shares are issued at a price above the

Solution

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