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Answer in One Sentence Only : - Book Keeping and Accountancy

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Answer in one Sentence only :
Define securities premium.

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Solution

Securities premium or share premium refers to the amount received in excess of the face value of the share. For example, if a share with face value Rs 10 is issued at Rs 12, the amount of premium per share is Rs 2. The amount of premium is the difference between the issue price and the face value of a share.

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Chapter 10: Company Accounts Part - 1 (Accounting for Shares) - Exercise 1 [Page 350]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 10 Company Accounts Part - 1 (Accounting for Shares)
Exercise 1 | Q 14 | Page 350
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