If securities premium reserves increases and there is a new issue of shares and debentures then where the premium amount will be added? in equity or debentures? Explain with reason

Dear Student

It shall be given in the question if there is an issue of shares or debentures. However if no information is given, its not a problem because Increase of Securities Premium can be shown as a separate item in financing activity in preparation of cash flow statement.

To be on safer side, Give a note in the solution that as Details of Securities Premium is not given it has been shown as a separate item in Financing activities.



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