Question

What would be the Journal entries for shares issued at a premium called at the time of application?

Options

• Bank A/c Dr. To Share Application A/c
  Share Application A/c Dr. to Share Capital A/c to Securities Premium A/c

• Share Application A/ c Dr. To Share Capital A/ c To Securities Premium A/ c
  Bank A/ c Dr. to share application A/ c

• Both the above alternatives

• None of the above

Answer 1

Bank A/c Dr. To Share Application A/c
Share Application A/c Dr. to Share Capital A/c to Securities Premium A/c