shares & accounting: is it ok to write off the entire premium to the share premium account? (uk)?

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shares & accounting: is it ok to write off the entire premium to the share premium account? (uk)?

2006-11-25 00:47:07 · 3 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance

3 answers

yeap, u write off the par value to the share capital account and the remainder (sold value - par value), which is the premium is then sent to the share premium account. thisi is what i learnt from the CIE A lvls syllabus

2006-11-25 00:56:23 · answer #1 · answered by Anonymous · 0⤊ 0⤋

What else would you do with it?

The share premium account is a balance sheet entry which is there to account for share premium: generally speaking the entire premium MUST go in this entry, otherwise it won't balance.

2006-11-25 01:04:25 · answer #2 · answered by Graham I 6 · 0⤊ 0⤋

Don't listen to the others. I am willing to share my account, contact me for more info.

2016-05-23 01:05:22 · answer #3 · answered by Lois 4 · 0⤊ 0⤋