When shares are issued above their nominal value, the exc...
When shares are issued above their nominal value, the excess above the nominal value is
Credited to profit and loss account
Debited to share premium account
Credited to share capital account
Credited to share premium account
Correct answer is B
A company issues its shares at a premium when the price at which it sells the shares is higher than their par value. The amount of the premium is the difference between the par value and the selling price and will be debited to the share premium account.
The apportionment of the cost of a fixed asset to the profit and loss account is termed? ...
The principal book of account where accounts are classified and summarized is ...
The art of recording transactions in books of account is known as ...
Discount allowed N2,000; Bad debts 1,000 Cheque received from customers 24,000 Returns inwards 50...
Which of the following entries is made damaged goods are returned to the supplier? ...