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AE for Revenue in Advance

The amount re...

Question

The amount received over and above the par value is credited to which account?

A

Share Capital Account

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B

Calls in advance Account

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C

Securities Premium Account

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D

Share Forfeiture Account

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Solution

The correct option is C Securities Premium Account
Securities premium account contains the money that is received by way of premium in calls. premium is the value that is over and above the par value.

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