Is the premium amount included in the subscribed capital of
the company.
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Answer / soori
No, Securities premimum is shown seperately under reserves
& Surpluses on liabilities side of the Balance sheet of the
company. It can be useful for written off the premium on
redumption of the preferencial shares, Entry comes like
under:
Securities premium A/c Dr
To Premium on Redemption of the Preference
sharecapital A/c
According to Sec 79(1) of companies act 1956 Security
pemium can be useful for issue the Bonus shares for fully
paid up capital.
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Answer / soori
Dear Deepak
as per sedules forming part of Balance sheet, securities
premium has been showned in separate account in Reserves &
Surpluses. But in Balance sheet, securities permium club in
R&S.
Regards
soori
| Is This Answer Correct ? | 4 Yes | 1 No |
Answer / deepak
No,
You need to show it separately in balance sheet under the
head capital premium in Liabilities side
| Is This Answer Correct ? | 1 Yes | 2 No |
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