Authorized Capital and Division of Shares
The authorized capital of a company is the maximum amount of share capital that the company is authorized to issue. In this case, the authorized capital is Rs10,00,000, which is divided into 1,00,000 shares of Rs10 each.

Issuance of Shares at Premium
When a company issues shares at a price higher than their face value, it is said to be issuing shares at a premium. In this scenario, the company issued 5,000 shares at a premium.

Explanation of Issuing Shares at Premium
- Issuing shares at a premium allows a company to raise additional funds without increasing its authorized capital.
- The premium amount is added to the securities premium account, which can be used for various purposes such as issuing bonus shares, writing off preliminary expenses, etc.
- The premium amount must be received in cash and cannot be utilized for any other purpose.

Benefits of Issuing Shares at Premium
- Helps in raising additional funds for the company without increasing the authorized capital.
- Enhances the company's financial position by increasing its reserves and surplus.
- Can be used for various corporate purposes, providing flexibility to the company in managing its finances.

Conclusion
Issuing shares at a premium can be a beneficial strategy for companies looking to raise additional funds and strengthen their financial position without increasing their authorized capital. It is important for companies to comply with all legal requirements and accounting standards when issuing shares at a premium.