4 000 Equity Shares of 10 each were issued at 8 premium to the promoters of a company for their serv...........

General Accounting Principles Accounting for Shares

4,000 Equity Shares of ?10 each were issued at 8% premium to the promoters of a company for their services. Which account will be debited?

Share Capital Account

Goodwill Account/Incorporation Cost Account

Securities Premium Reserve Account

Cash Account

छोटे Courses बड़े Results

Master Accounting for Shares

Prepare through Micro-courses

Try Now

Explanation:

company issue shares to promotors for their services rendered to the company. such issue of shares also comes under the category of issue of shares for consideration other than cash. from accounting point of view, its 'incorporation cost'or'formation expense'. hence. the amount is debited to 'Goodwill Account/Incorporation Cost Account'