why share issued over the par value? or why issue share by
share premium?
Answer Posted / ramdoyal meghna
Shares are issued at a premium:
to ensure fairness between old and new shareholders
if 2800 shares issued at £1 then shares would have a nbv of
9800/4800 = £2.04 and original shareholders would have lost £1.46
per share book value
the retained profits have been earned by original shareholders and
issuing the new shares at a premium ensures new shareholders buy
a stake in those earnings
| Is This Answer Correct ? | 1 Yes | 0 No |
Post New Answer View All Answers
STATE & EXPLAIN THE IMPACT OF GLOBAL FINANCIAL CRIS ON CEMENT SECTOR IN INDIA:
I want to know that , If we called a person for one day for drive our company van or any other purpose. so how it will accounted in our (i.e companies) Books of accounts....
Information regarding shop & establishment registration of propiertor ship & require document for this
1) What is the steps of delisting the listed company 2) How to spliting the listed company shares 3) Which way the company should function when it has paidup capital is equal or more than 5,00,00,000/- (I mean which way the company should do it work in the company Act 1956. Is the company have to appoint a CS and and managing director of a any other things which is compulsory for these kind of company which paid up capital is 5,00,000/-
In the case of Internal Reconstruction of company Accrued Int. On debenture / Outstanding int. On debenture transfer or not in capital reduction a/c . Explain
How does a bank or financial institution calculate COGS? What are the 'direct' costs of a loan or deposit revenue operation?
what is meant by search report of the company n why is it prepared?
Can anybody tell when sbh dispatches appointment letters for Clerical for people completed medical and scrutiny of documents on 15/08/09?
Treatment of Government grant and its utilization in P
hat is the meaning of the capital ique,and hat is capital,and ahat is ique
I am Simrat Kaur. I am persuing graduation from P.U. I have an experience of 14 months as a CSA. But i hav an experience letter of 6 months.But I can show my joinin letter of the other job. I hav knowledge of basics of computer & internet. Actually, m findin job in chandigarh. I am findin the right opportunity. so, Can u plz help me in findin the right job?? Can u plz tel me abt where interviews r goin on?
what is correct accounting treatment for preliminary exps and pre-operative Expsas per AS 26? or any other applicable AS?
analyses of Cost control
Income Tax Department sends cheque for INR 2 Crore as Refund after completion of Assessment for A.Y.2011 - 2012 to a Company. As per IT Return filed for this year I.T. due to Government was INR 60 Lac but was assessed at INR 70 Lac. TDS due to Company was INR 3 Crore which was admitted as INR 2.7 Crore by Government. Government also adjusts Tax dues for A.Y. 2009 - 2010 of INR 40 Lac which was disputed earlier by the Company and Appeal was lying with the CIT. Government pays Interest to the Company amounting to INR 40 Lac. Provision for Income Tax made by the Company in its accounts for F.Y. 2010 - 2011 (A.Y. 2011 - 2012) was INR 50 Lac. What would be the Journal Entry at the time of receipt of Refund of INR 2 Crore from the Government in A.Y. 2014 - 2015 in the books of the Company?
Is it possible to list only a portion of Equity Shares leaving the balance as unlisted?