BMC Associates says Replied on 20th September,2026 02:07 PM
In the Statement of Changes in Equity (SOCIE), share capital and securities premium are presented as separate components of equity.
If the question specifically asks for the “share capital” movement, only the face value of shares issued or cancelled is included there.
For example, if a company issues 10,000 shares of ₹10 each at ₹15:
Share Capital = ₹1,00,000
Securities Premium = ₹50,000
So, in the SOCIE:
Share Capital → ₹1,00,000
Other Equity / Securities Premium → ₹50,000
The premium is not part of share capital because it represents the amount received over and above the nominal/face value of the shares. It is separately recognised within equity.
Therefore, if you see only share capital in a particular SOCIE calculation, it usually means the question is asking specifically for the movement in the issued share capital, while the securities premium is shown separately under other equity.
This distinction is important when preparing financial statements, whether working with chartered accountant firms in gurgaon, a chartered accountant gurgaon, a ca firm in gurgaon, or a ca in gurgaon.
FAQ (Frequently Asked Questions) Regarding Test Series
Q-1 Do we have to write the tests on the same day of the schedule? Q-2 Chapters mentioned in the test schedule are as per which book?
BMC Associates says Replied on 20th September,2026 02:07 PM
In the Statement of Changes in Equity (SOCIE), share capital and securities premium are presented as separate components of equity. If the question specifically asks for the “share capital” movement, only the face value of shares issued or cancelled is included there. For example, if a company issues 10,000 shares of ₹10 each at ₹15: Share Capital = ₹1,00,000 Securities Premium = ₹50,000 So, in the SOCIE: Share Capital → ₹1,00,000 Other Equity / Securities Premium → ₹50,000 The premium is not part of share capital because it represents the amount received over and above the nominal/face value of the shares. It is separately recognised within equity. Therefore, if you see only share capital in a particular SOCIE calculation, it usually means the question is asking specifically for the movement in the issued share capital, while the securities premium is shown separately under other equity. This distinction is important when preparing financial statements, whether working with chartered accountant firms in gurgaon, a chartered accountant gurgaon, a ca firm in gurgaon, or a ca in gurgaon.
Leave a comment below!