2.2.3.2 - At Premium
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Practice Questions
Test your understanding with targeted questions
Define equity shares?
💡 Hint: Think about how their return is related to company performance.
What does 'issue price' refer to?
💡 Hint: It's not always the same as face value.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What are equity shares?
💡 Hint: Remember how they reflect ownership in a company.
Shares can be issued at which of the following prices?
💡 Hint: Think about the different ways a company might raise capital.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
A joint stock company issues 5,000 equity shares of ₹20 at a premium of ₹4. Prepare journal entries for application, allotment, and premium amount.
💡 Hint: Break it down into each stage of the share issuance.
Discuss the impact on financial statements when a company forfeits shares and later reissues them at a discount.
💡 Hint: Consider the balance sheet and income statement implications.
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