Question

how is premium on share used in company​

Answer 1

Answer:

A company issues its shares at a premium when the price at which it sells the shares is higher than their par value. ... Instead, it is more commonly recorded in an account called Paid-In Capital In Excess of Par Value. It may also be recorded in an account called Additional Paid-In Capital.

Explanation:

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Answer 2

Answer:

Share premium can usually be used for paying equity related expenses such as underwriter's fees. It can also be used to issue bonus shares to the shareholders. The costs and expenses relating to issuance of new shares can also be paid from the share premium.