A-LevelAccountingPreparation of financial statements9706/12 · May/June 2010 · Q191 Mark
When is a share premium account opened?
Awhen shares are issued at a price above nominal value
Bwhen shares are redeemed by the company at a premium
Cwhen shares are sold by a shareholder at a price above their nominal value
Dwhen the company issues bonus shares
✓ Correct answer
A: when shares are issued at a price above nominal value
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