what is premium?in ts grewal2013 edition ,in the chapter of single entry ,question no.8,what des premium means there,and how that to be calculated?
Hey,
Premium refers to the amount above face value/cost.
Here, in this question, it is mentioned that investments of Rs 2,000 are sold @ premium of Rs 2% that means these are sold at Rs 2,040 .
I hope this answers your query.
Keep Posting!!
Premium refers to the amount above face value/cost.
Here, in this question, it is mentioned that investments of Rs 2,000 are sold @ premium of Rs 2% that means these are sold at Rs 2,040 .
I hope this answers your query.
Keep Posting!!