Question : Securities Premium Reserve can be utilised for the purposes of
Option 1: Writing off preliminary expenses
Option 2: Writing off expenses such as share issue expenses, commission, discount allowed on issue of Securities
Option 3: Providing for the premium payable on redemption of debentures or Preference Shares
Option 4: All of the Above
Correct Answer: All of the Above
Solution : Securities Premium Reserve can be utilised for the purposes prescribed in Section 52(2) of the Companies Act, 2013, which are:
(i) writing off preliminary expenses
(ii) writing off expenses such as share issue expenses, commission, discount allowed on issue of Securities,
(iii) providing for the premium payable on redemption of debentures or Preference Shares,
(iv) in buying-back its own shares, or
(v) issuing fully paid bonus shares.
Hence, the correct answer is option 4.
Question : The amount of Securities Premium Reserve Account is utilised for the purposes specified in Section 52(2) of the Companies Act, 2013. The purposes for which Securities Premium Reserve can be used are:
Question : As per Section 52 of Companies Act 2013, Securities Premium Reserve cannot be utilised for ___________.
Question : The sum obtained as a premium on securities cannot be used for the following, according to Section 52(2) of the Companies Act, 2013:
Question : Premium on issue of debentures can be used for ________.
Question : Which of the following statements is false?
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