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    Question

     A company issued 10,000 shares at a premium of 10%,

    with a face value of ₹10 per share.  How much amount will be credited to the Securities Premium Account?
    A ₹1,000 Correct Answer Incorrect Answer
    B ₹10,000 Correct Answer Incorrect Answer
    C ₹5,000 Correct Answer Incorrect Answer
    D ₹20,000 Correct Answer Incorrect Answer
    E ₹15,000 Correct Answer Incorrect Answer

    Solution

    The premium per share is 10% of the face value. Premium per share = 10% of ₹10 = ₹1 per share. Total amount credited to the Securities Premium Account = 10,000 shares × ₹1 = ₹10,000. So, ₹10,000 will be credited to the Securities Premium Account.

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