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Is the premium amount included in the subscribed capital of
the company.
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Answer Posted / soori
No, Securities premimum is shown seperately under reserves
& Surpluses on liabilities side of the Balance sheet of the
company. It can be useful for written off the premium on
redumption of the preferencial shares, Entry comes like
under:
Securities premium A/c Dr
To Premium on Redemption of the Preference
sharecapital A/c
According to Sec 79(1) of companies act 1956 Security
pemium can be useful for issue the Bonus shares for fully
paid up capital.
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