Question

Premium receivedfir succeeding accounting year is called

Answer 1

Answer:

Premium received is called share premium.

Explanation:

• A shareholder's share premium account is credited for money paid, or promised to be paid, for a share, but only if they pay more than the share's cost.
• The difference between the par value of a company's shares and the total amount of money received for newly issued shares is known as share premium.
• This account can be used to deduct equity-related expenses like underwriting fees, as well as to award bonus shares.

Understanding the share premium:

• Company ABC, for example, has issued 300 shares of stock. The shares have a par value of $10 each, but the corporation has been compensated $15 per share.

Hence, the amount received for the succeeding financial year is called share premium.

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Answer 2

Answer:

Premium received fir succeeding accounting year is called share premium.

Explanation:

Share Premium can be allowed of as the difference between the par value of a company's shares and the total quantum of plutocrat a company receives for shares lately issued. This account can be used to write off equity- related charges, similar as underwriting costs, and may also be used to issue perk shares.

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