Question

When the equity shares are issued at a price above the face value, the excess price received over the face value of shares, is credited to which of the following account?

Q: When the equity shares are issued at a price above the face value, the excess price received over th

Share premium is the excess of share price over the face value of the share. This excess amount is recorded under the Share Premium Account while the equity capital is recorded at the face value. Share premium forms a part of the shareholder equity.

A Share capital account

B General Reserve account

C Share Premium account

D Revaluation Account

E Credited to Profit & Loss A/c

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Question

When the equity shares are issued at a price above the face value, the excess price received over the face value of shares, is credited to which of the following account?

Solution

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