Why secutries premium account is credited
This query is : Resolved
pradeep kundnani
(Querist)
18 March 2013
hi,sir/mam
my dought is why secutries premium account is credited
we pass journal entry
sh allotment a/c...dr
To sh capital
To secutries account
what is logic behind that?
i mean we can credit whole amt in capital itself.
my dought is why secutries premium account is credited
we pass journal entry
sh allotment a/c...dr
To sh capital
To secutries account
what is logic behind that?
i mean we can credit whole amt in capital itself.
CA Ayush Agarwal
(Expert)
18 March 2013
Share Capital is What Which can't Exceed Authorised Capital.
That is Face Value.
But Security premium is Different, We Can Adjust Security premium for Buyback and Other Losses.
But Not Share Capital Amount.
That is Face Value.
But Security premium is Different, We Can Adjust Security premium for Buyback and Other Losses.
But Not Share Capital Amount.
Message likes :
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18 March 2013
The premium money is a extra amount collecting for issuing shares.
This is not a capital , while redemption we only repay the shares only with out premium money.
Hope u have cleared
This is not a capital , while redemption we only repay the shares only with out premium money.
Hope u have cleared
Message likes :
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