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
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.
Two partners A and B invested Rs 70,000 and Rs 50,000 respectively in a business. Both the partners distribute 75% of the profit equally and distribute ...
A invest thrice the sum invested by B and withdraws half of sum after 2 months and again withdraws half of the remaining sum after 4 months. Find ratio ...
Mayank invested Rs. 100,000 in the garment business. After a few months, Shanu joined him with Rs. 60000. At the end of the year, the total profit was d...
"Karan" and "Arjun" launched a business, with "Karan" contributing 25% more capital than "Arjun." 8 months later, 'Arjun' pulled out of the investment. ...
- Suresh and Ramesh entered into a partnership. Suresh invested Rs. 2,400 more than Ramesh and withdrew his amount after 10 months. If the profit sharing rat...
P, Q and R started a business. P and Q invested 25% and 50% more than R respectively. If total profit at the end of the year is Rs. 32000, find Q’s sh...
Three friends A, B and C entered into partnership by investing Rs. 40X, Rs. (5X + 1500) and Rs. (5000 – 10X) respectively. The ratio of the time peri...
‘Karan’ invested Rs. 3,000 in a business. After 5 months, ‘Lokesh’ joined with 60% of Karan’s investment. If the total profit at the end of th...
P invested Rs. 20,000 in a SIP offering 10% compound interest compounded annually, whereas M invested Rs. 2000 more than the amount invested by P in a S...
‘J’, ‘K’, and ‘L’ started a business with initial investments of Rs. ‘5x + 700’, Rs. ‘6x + 600’, and Rs. ‘3x + 400’ respectively...
Relevant for Exams:
