Sam posted an Question
October 15, 2020 • 19:29 pm 30 points
  • UGC NET
  • Commerce

Forfeiture of shares

How did share premium come into picture and how is answer option C

1 Answer(s) Answer Now
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  • 8 Comments
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  • Priya gulani

    shares have been reissued at discount as they have been reissued as fully paid up shares for rs 6 there is loss on reissue

  • Rucha rajesh shingvekar best-answer

    not given in question, we need to find it by doing calculation.

  • Rucha rajesh shingvekar

    A capital reserve is an account in the equity section of the balance sheet that can be used for contingencies or to offset capital losses. It is derived from the accumulated capital surplus of a company, created out of capital profit.

  • Rucha rajesh shingvekar

    if any capital gain arises in business it transferred to capital reserve account.

  • Rucha rajesh shingvekar

    Share premium is the amount received by a company over and above the face value of its shares.

  • Rucha rajesh shingvekar

    A share premium account shows up in the shareholders' equity portion of the balance sheet. The share premium account represents the difference between the par value of the shares issued and the subscription or issue price.

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    everything right but where is it given in question

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