Money received on issue of share which is more than the nominal value of shares is credited to which account?

The correct answer is: A. Security premium account.

A security premium account is a type of reserve account that is used to account for the excess amount of money that is received when shares are issued at a price that is higher than their nominal value. This excess amount is called the “premium” and it is recorded in the security premium account. The security premium account can be used to offset any losses that the company may incur in the future. It can also be used to pay dividends to shareholders.

The other options are incorrect for the following reasons:

• Option B, Discount account, is used to account for the discount on shares. A discount is the amount by which the issue price of a share is less than its nominal value.
• Option C, Share capital account, is used to account for the nominal value of shares. The nominal value of a share is the face value of the share.
• Option D, Profit and loss account, is used to account for the profits and losses of a company.