Question

AB limited has issued 5,000 shares of face value of Rs. 10 each at Rs. 15 each, the amount of premium per share is .

• A. Rs. 5,000
• B. Rs. 10
• C. Rs. 25,000
• D. Rs. 5

Answer 1

The correct option is D Rs. 5

Amount of premium per share
= Issue price - Face value
= Rs. 15 - Rs. 10
= Rs. 5