Question

If Share of 400000 are issued for purchase of assets of 500000, 100000 will be treated as .................

Answer 1

Answer:

profit of the business

Answer 2

Answer:

If shares of 4,00,000 are issued for the purchase of assets of 5,00,000, then 1,00,000 will be treated as Premium.

Explanation:

We know that only 4lakhs shares are issued by a company for the purchase of assets valued at 5lakhs. So, we can conclude that the number of shares is lesser than the asset bought. In accounts, the deficit of 1lakhs is considered as the premium on the shares issued.