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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › company accounting
what is the formula to calculate share premium and share capital?.
There is no formula!!!
When share are issued, the nominal (par) value is credited to the share capital account.
If the shares are issued at a price higher than the nominal/par value, then the excess is credited to the share premium account.
If you watch my free lecture on company accounts you will see a worked example on the issue of shares (including rights issues and bonus issues).
