Maharashtra State BoardHSC Commerce 12th Board Exam
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Select the Most Appropriate Answer from the Alternatives Given Below and Rewrite the Sentence : - Book Keeping and Accountancy


Select the most appropriate answer from the alternatives given below and rewrite the sentence :
The excess price received over the par value of shares, should be ___________ to securities premium a/c.


  • debited

  • credited

  • adjusted

  • none of these

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The excess price received over the par value of shares should be credited to securities premium a/c.

Explanation: When shares are issued at a price above their par value, it is known as issuing of shares at premium. The excess amount received as premium is credited to a separate account known as Securities Premium Account. It is credited, as it is a gain for the company and is in the nature of nominal account.

Concept: Issue at Par and Premium and at Discount
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Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 10 Company Accounts Part - 1 (Accounting for Shares)
Exercise | Q 13 | Page 351
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