Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

When a company issues shares at a premium, how amount of premium should be received by the company?

Options:

Along with application money

Along with allotment money

Along with calls

Along with any of the above

Correct Answer:

Along with any of the above

Explanation:

The correct answer is option 4- Along with any of the above.

When a company issues shares at a premium, the amount of premium should be received by the company Along with any of the above.

When the issue of shares is at a premium, the amount of premium may technically be called at any stage of the issue of shares. However, premium is generally called with the amount due on allotment, sometimes with the application money and rarely with the call money.