Question
A company issues 10,000 equity shares at ₹50 each.
Share capital (face value ₹10) and share premium recorded are:Solution
Total Proceeds = 10,000 shares × ₹50 = ₹5,00,000. Share Capital (at face value) = 10,000 × ₹10 = ₹1,00,000. Share Premium = Total Proceeds − Share Capital = 5,00,000 − 1,00,000 = ₹4,00,000.
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