AccountancyStudents Forums

   
 
What is Share premium account and Ordinary and preference shares?
 
befriends
Posted: 19-04-2009 11:55 AM   [ Ignore ]
Established Member
Avatar
RankRankRank
Total Posts:  192
Joined  07-10-2008
Studying:  ACCA
Method:  College

if possible throw in an e.g.

Profile
 
 
Bluewednesday
Posted: 19-04-2009 12:00 PM   [ Ignore ]   [ # 1 ]
Moderator
Avatar
RankRankRankRankRank
Total Posts:  2842
Joined  15-03-2004
Studying:  Qualified
Method:  Not applicable

Share premium account is where the extra over and above the shares nominal value is posted.  Ordinary £1 shares are issued at £2.40 so £1 goes into the ordinary share capital account and 1.40 goes into the share premium account.

Ordinary shares are exactly as stated.

Preference shares mean there is a dividend paid first to these holders but there are no voting rights attached as there are with ordinary shares.

 Signature 

bluewednesday

Profile
 
 
   
 
 
‹‹ Are there any formulas for F3 available in this forum?      Is this correct? Do they appear in SCiE ? ››