Question

4. Premium received on the issue of shares is shown on,
a. Equity and liabilities part of the balance sheet
b. Assets part of the balance sheet
c. Credit side of the statement of profit and loss
d. Debit side of the statement of profit and loss​

Answer 1

Question

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4. Premium received on the issue of shares is shown on

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a) Equity and liabilities part of the balance sheet

b) Assets part of the balance sheet

c) Credit side of the statement of profit and loss

d) Debit side of the statement of profit and loss

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Answer

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→ (a) Equity and liabilities part of the balance sheet.

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Note ✓

• The share premium account represents the difference between the par value of the shares issued and the subscription or issue price.

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