Question

When face value of the share is ₹ 100 and issued price is ₹ 110 then it is said that the shares are issued at ______.

Answer 1

When face value of the share is ₹ 100 and issued price is ₹ 110 then it is said that the shares are issued at premium.

Explanation:

Shares are issued at a premium when the issue price is higher than the nominal/face value. Here, the extra ₹ 10 (110 − 100) represents the premium amount, which is credited to the Securities Premium Account.