What is difference between share premium account and capital reserve in terms of utilisation of fund.
Menu
share premium and capital reserve
Replies (1)
share premium accont is used in case of redeeming pref shares or debenture at premium
when u redeem pref share at premium
pref share capital-----dr
premium on redemption-----dr
to p.share holders
then with the share premium account you cancel the debit premium on redemption i.e u take the money of the premium on redemption from the share premium account
journal
share premium---dr(kiuki premium less kar rahe hai)
to premium on redemption (kiuki iske jo debit balance tha usko cancel karne ke lie credit kie)
on other hand capital reserve is not so specific it can be used as free reserve
Recent Topics :
- FAI & FAST-DS 2026 query
- Is GST registration mandatory in this case
- Buying a residential flat in Goa: should my wife b
- Income tax filling
- Applicability of RCM in the case of import of serv
- Confusion in gst registration for service category
- Itc claimed from return defaulters
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
Related Topics :
CAclubindia
