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When a company issues its shares at a premium, what account is credited with the premium amount?
  • a)
    Share Capital A/c
  • b)
    Goodwill A/c
  • c)
    Securities Premium A/c
  • d)
    Retained Earnings A/c
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
When a company issues its shares at a premium, what account is credite...
When a company issues its shares at a premium, the premium amount received is credited to the "Securities Premium A/c." This account represents the amount received over and above the face value of the shares.
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