What is meant by Issue of Shares at a Premium?
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A limited company may issue the shares on following different terms. ... Issue of Shares at Premium i.e. at more than face value. Issue of Shares at Discount i.e. at less than the face value
premium shares can be understand as : When shares are issued at a price higher than the face value, they are said to be issued at a premium. Thus, the excess of issue price over the face value is the amount of premium. ... the premium on issue of shares must not be treated as revenue profits.
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