Advertisement Remove all ads

What is Meant by ' Securities Premium '? - Accountancy

What is meant by ' Securities Premium '?

Advertisement Remove all ads

Solution

When shares are issued at a price higher than its face value then, the difference between the issue price and the face value of the share is considered as premium (capital gain) for the company. This premium amount is transferred to a separate account called Securities Premium Account.

Concept: Issue at Par and Premium and at Discount
  Is there an error in this question or solution?
Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×