Shares of a company are issued at _______.

Par

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Discount

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Premium

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Either at par or premium

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Solution

The correct option is D
Either at par or premium

Shares of a company are issued either at par, premium or discount.

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Similar questions

Q. The forfeited shares may be re-issued:-
(I) At par only
(II) At par or premium only
(III) At par or at discount only
(IV) At or par at premium or at discount
The correct answer is :

Pass journal entries in the following cases:
(a) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 5% redeemable at par.
(b) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 10% redeemable at par.
(c) A Co.Ltd. issued ₹40,000; 12% Debentures at par redeemable at 10% premium.
(d) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 5% and redeemable at 5% premium.
(e) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 10% redeemable at 110%.

Q. If shares are issued at premium, i.e. at an amount more than the nominal or par value of shares, the amount of premium is credited to a separate account called ________.

Q. When shares are issued at a premium for the purpose of redemption of preference shares, amount of premium can be used for redemption of par value of preference shares.

Q. S Ltd. issued