Multiple choice

When a company issues shares at a premium & a sum equal to aggregate amount of premium on those shares, it shall be transferred to

  1. Share Premium A/c.

  2. Securities Premium A/c.

  3. Share Premium on Shares Application A/c.

  4. Share Premium on Shares Allotment A/c.

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

According to the Companies Act, the amount of premium on the shares shall be transferred to Securities Premium.