PAVAN KUMAR SAID right,
sharepremium is the amount collect by the company more than
the Face vaule of share.
its a shows in the liabilities side of B/s.
Whatever share issued in excess of face value is credited
to share premium account. It can be used for limited
purpose only. It is shown under reserve and surplus head.
Premium is the amount paid by us while purchasing a share
.which is more the face value of a share.
Eg Face value of a share-Rs.10 issued at Rs.12
so in this case Rs.2 is premium.
Share Premium:- Excess amount received by a firm over the
par value of its shares. This amount forms a part of the
non-distributable reserves of the firm which usually can be
used only for purposes specified under corporate
legislation.
Share premium : It is a the value more than the Company's
Face value for Eg ; If a share face value is rs 5 but it
is issued at the rate of 10/share then the difference
between the face value and the issued price here the diff=
5 so this Rs.5 is the share premium