Share Premium
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Accounting for Companies Limited by Shares
MS: Premium Syer · EN: Share Premium · ZH: 股份溢价
Meaning
Share premium is the excess obtained when shares are issued at a price higher than their par value. It is the difference between the issue price and the par value per share. Share premium is recorded separately and shown under Owner's Equity in the Statement of Financial Position.
Example
For example, Cahaya Berhad issues 40,000 shares of RM1 at RM1.20 each. Entry: Debit Bank RM48,000, Credit Share Capital RM40,000 and Credit Share Premium RM8,000, that is, a premium of 20 sen times 40,000 shares.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5