Practicing Success

Target Exam

CUET

Subject

Accountancy

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:
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.