Question

20000 equity shares of ₹10 eash are issued at 20%premium calculate the total account of share premium​

Answer 1

Answer:

Total account of share premium=200000+ 20% of 200000

=200000+40000

= ₹ 240000

Answer 2

Answer:

Total share premium is  ₹ 40,000

Explanation:

Given :

Number of shares = 20,000

Face Value = ₹ 10

At 20 % premium

Solution :

★ Calculate the account's total share premium :

Face Value = ₹ 10

Issued at 20 % premium

The share premium per share =

⇒ $\dfrac{20}{100} \times 10$

⇒ 2

The share premium per share = 2

So,

Total share premium =

Number of shares × The share premium per share

⇒ 20,000 × 2

⇒ 40,000

Total share premium = ₹ 40,000

Therefore,

Total share premium is  ₹ 40,000