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?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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