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Bonds issued at a premium always have
When shares are issued at value which is more than face value then it is called shares issued at premium.
If a share has a nominal face value of say $10.00 then if issued at less than $10.00, is said to issued at a discount If issued at $10.00, then issued at par. If issued at more than $10.00 is issued at a premium.
When shares are issued at price which is more than face value then issuance of shares is called issued at premium and that excess amount above face value is called share premium.
When shares are issued at price which is more than face value then issuance of shares is called issued at premium and that excess amount above face value is called share premium.
The bond price exceeds the par price when issued at a premium and declines to the par value as it gets closer to maturity.
in case the shares have been issued at a premium and the amount of premium has been received then at the time of forfeiture of such share
All of the above are correct
In case the shares have been issued at a premium and the amount of premium has been received then at the time of forfeiture of such share (a) share premium account should be debited (b) share premium account should be credited (c) share premium account should be neither debited nor credited (d) none of these
increasse if the bonds were issued at either a discount or premium.
the amount payable for a share above its nominal value. Most shares are issued at a premium to their nominal value. Share premiums are credited to the company's share premium account.
Well the company wants to profit. And issuing shares at premium provides capital to the company without changing its equity capital.