Share premium
Amount paid for shares above their nominal value.
The excess of the amount received on issue of shares over their nominal value, recorded in a separate reserve within equity.
Passende Übungsfragen
The assets and liabilities at the reporting date
The movements in each component of equity during the period, including total comprehensive income, dividends and share issues
The cash received and paid during the period
The revenue and expenses for the period only
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☝️ Single
A company issues 50,000 £1 ordinary shares at £1.80 each for cash. What is the correct accounting entry?
Debit bank £90,000; credit share capital £90,000
Debit bank £90,000; credit share capital £50,000 and credit share premium £40,000
Debit bank £50,000; credit share capital £50,000
Debit bank £90,000; credit retained earnings £90,000
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☝️ Single
A company makes a bonus (capitalisation) issue of one new share for every four held. What is the effect on total equity?
No change in total equity; reserves are converted into share capital
Cash increases by the nominal value of the new shares
Total equity increases by the nominal value of the new shares
Total equity decreases by the nominal value of the new shares
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