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When are the shares issued at a premium? - Accounts

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Question

When are the shares issued at a premium?

Very Short Answer
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Solution

When the company is fully assured of a high demand for its issue in the market or its existing shares have a high price in the market, then it issues its shares at a premium.

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Chapter 6: Company Accounts - Issue of Shares - SHORT ANSWER QUESTIONS [Page 6.147]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 6 Company Accounts - Issue of Shares
SHORT ANSWER QUESTIONS | Q 24. | Page 6.147
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