B Com Exam > B Com Videos > Advanced Corporate Accounting > Issue of Shares at Premium
Issue of Shares at Premium Video Lecture | Advanced Corporate Accounting - B Com
|
89 videos|52 docs|22 tests
|
FAQs on Issue of Shares at Premium Video Lecture - Advanced Corporate Accounting - B Com
| 1. What is the meaning of issuing shares at a premium? |  |
Ans. Issuing shares at a premium refers to selling company shares at a price higher than their face value. This premium is an additional amount paid by investors over and above the face value of the shares.
| 2. Why would a company issue shares at a premium? | |
Ans. A company may choose to issue shares at a premium to raise additional funds for expansion or to strengthen its financial position. It can also reflect positively on the company's perceived value in the market.
| 3. How is the premium on shares calculated? | |
Ans. The premium on shares is calculated by taking the excess of the issue price over the face value of the shares. For example, if a company issues shares at $20 with a face value of $10, the premium would be $10 per share.
| 4. What are the accounting implications of issuing shares at a premium? | |
Ans. When a company issues shares at a premium, the premium amount is recorded in a separate account called "Securities Premium Account." This amount cannot be distributed as dividends but can be used for specific purposes as per regulations.
| 5. Are there any legal restrictions on issuing shares at a premium? | |
Ans. Yes, there are legal restrictions on issuing shares at a premium. Companies must comply with the regulations set by the regulatory authorities in their jurisdiction, ensuring transparency and fairness to shareholders.
Related Exams
About this Video
|
Dec 23, 2024 Last updated |
Video Description: Issue of Shares at Premium for B Com 2024 is part of Advanced Corporate Accounting preparation.
The notes and questions for Issue of Shares at Premium have been prepared according to the B Com exam syllabus.
Information about Issue of Shares at Premium covers all important topics for B Com 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Issue of Shares at Premium.
Introduction of Issue of Shares at Premium in English is available as part of our Advanced Corporate Accounting for B Com & Issue of Shares at Premium in
Hindi for Advanced Corporate Accounting course. Download more important topics related with notes, lectures and mock test series for
B Com Exam by signing up for free.
Description
Video Lecture & Questions for Issue of Shares at Premium Video Lecture | Advanced Corporate Accounting - B Com - B Com full syllabus preparation | Free video for B Com exam to prepare for Advanced Corporate Accounting.
Information about Issue of Shares at Premium
Here you can find the meaning of Issue of Shares at Premium defined & explained in the simplest way possible.
Besides explaining types of Issue of Shares at Premium theory, EduRev gives you an ample number of questions to practice Issue of Shares at Premium tests,
examples and also practice B Com tests.
|
89 videos|52 docs|22 tests
|
|
Explore Courses for B Com exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Summary
,Exam
,MCQs
,Issue of Shares at Premium Video Lecture | Advanced Corporate Accounting - B Com
,Viva Questions
,Free
,video lectures
,Important questions
,Previous Year Questions with Solutions
,practice quizzes
,study material
,ppt
,mock tests for examination
,Extra Questions
,past year papers
,Semester Notes
,shortcuts and tricks
,Objective type Questions
,Issue of Shares at Premium Video Lecture | Advanced Corporate Accounting - B Com
,Issue of Shares at Premium Video Lecture | Advanced Corporate Accounting - B Com
,Sample Paper
;
Study Issue of Shares at Premium on the App
Students of B Com can study Issue of Shares at Premium alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Issue of Shares at Premium,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Issue of Shares at Premium is prepared as per the latest B Com syllabus.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup