Is the premium amount included in the subscribed capital of
the company.

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.

Is This Answer Correct ?    7 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

I want to know that , If we called a person for one day for drive our company van or any other purpose. so how it will accounted in our (i.e companies) Books of accounts....

919


STATE & EXPLAIN THE IMPACT OF GLOBAL FINANCIAL CRIS ON CEMENT SECTOR IN INDIA:

1918


How does a bank or financial institution calculate COGS? What are the 'direct' costs of a loan or deposit revenue operation?

7663


how to solve the problem of sechdule date problem in sap proframme.

2139


what is meant by search report of the company n why is it prepared?

1837






Information regarding shop & establishment registration of propiertor ship & require document for this

2141


what is rate of service tax and form no. of service tax ? wt rules of service tax a particuler once .?

2086


Is form 38 mandatory to issue c form in up. thru online mode

1443


Occasionally it is said that issuing convertible bonds is better than issuing stock when the firms shares are undervalued. Suppose that the financial manager of Decent Furniture Company does in fact have inside information indicating that the decent stock price is too low. Decent furniture earnings will in fact be higher than investor’s expectations. Suppose further that the inside information cannot be released without giving away a valuable competitive secret. Clearly, selling shares at the present low price would harm Decent’s existing shareholders. Will they also lose if convertible bonds are issued? If they do lose in this case, is the loss more or less than it would be if common stock is issued? Now suppose that investors forecast earnings accurately, but still under value the stock because they overestimate Decent’s actual business risk. Does this change your answer to the questions posed in the preceding paragraph? Explain.

2309


analyses of Cost control

2021


How often is the stock market ticker updated? 15sec? 30sec?

2481


sir i want aao lic exam model question paper

2491


I am Simrat Kaur. I am persuing graduation from P.U. I have an experience of 14 months as a CSA. But i hav an experience letter of 6 months.But I can show my joinin letter of the other job. I hav knowledge of basics of computer & internet. Actually, m findin job in chandigarh. I am findin the right opportunity. so, Can u plz help me in findin the right job?? Can u plz tel me abt where interviews r goin on?

2107


In the case of Internal Reconstruction of company Accrued Int. On debenture / Outstanding int. On debenture transfer or not in capital reduction a/c . Explain

1198


hat is the meaning of the capital ique,and hat is capital,and ahat is ique

2227