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  • This topic has 2 replies, 3 voices, and was last updated 1 year ago by P2-D2.
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  • November 20, 2021 at 3:26 am #641103
    JayshreeA
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    In DUGGAN CO sum from Kaplan Exam Kit, How did share premium of 1800 come?

    November 20, 2021 at 9:33 am #641137
    leenajahan
    Member
    • Topics: 0
    • Replies: 2
    • ☆

    Mention the question number or explain the question here so it will be easy for providing a guidance

    November 20, 2021 at 10:07 am #641146
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6451
    • ☆☆☆☆☆

    It comes from the excess of the proceeds received from the share issue above the par value of $1.

    We received $2.20 per share, the par value is $1. The excess is therefore $1.20 ($2.20 – $1.00) and this is then multiplied by the 1.5 million shares issued.

    Thanks

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