Question

Shares may be issued. (a) At par value (b) At premium (c) At discount (d) All the above

Answer 1

Shares of a company are actually ownership of a company. So every shareholder is a part owner of the company in which he owns shares. But it would be impossible to main capital accounts for so many shareholders. So there is unique share capital account and accounting treatment for the issue of shares. Let us take a look.