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Share of ₦3 nominal value were issued at a price ₦4. The difference of ₦1...

Accounts - Principles of Accounts
WAEC 2012

Share of ₦3 nominal value were issued at a price ₦4. The difference of ₦1 is a

  • A. commision
  • B. discount
  • C. premium
  • D. bonus
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Correct Answer: Option C
Explanation

Issue of shares at premium means that the issuing of shares above the face value (also called as nominal value or par value). The difference between the face value of shares and the price of shares issued at premium is the premium amount.


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