Question : Premium on issue of debentures can be used for ________.
Option 1: Issue of partly paid bonus share
Option 2: Writing off losses incurred during the year
Option 3: Writing off discount/loss on issue of debentures
Option 4: Writing off past losses
Correct Answer: Writing off discount/loss on issue of debentures
Solution : According to Section 52(2) of the Companies Act, 2013, securities premium reserve on the issue of debentures can be used for the writing of discount/loss on the issue of debentures.
Hence the correct answer is option 3.
Question : As per Section 52 of Companies Act 2013, Securities Premium Reserve cannot be utilised for ___________.
Question : The Company will pay a premium at the time of their redemption. Although such premium will be paid at the time of actual redemption, as it is a known ------- the Company records such loss at the time of issue by -------- an account called, ------------------------.
Question : KTR Ltd., issued 365, 9% Debentures of Rs. 1,000 each on 4th March, 2016 at 6% discount, redeemable at 5% premium. Loss on issue of Debentures debited/credited with _____________.
Question : Securities Premium Reserve can be utilised for the purposes of
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