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:
Option 1:
for writing off preliminary expenses
Option 2: for writing off expenses of, or commission paid or discount allowed on debentures of the company
Option 3: for providing premium payable on the redemption of redeemable preference shares or debentures of the company
Option 4: All of the above
Correct Answer: All of the above
Solution : Answer = All of the above
The Securities Premium Reserve Account, as per Section 52(2) of the Companies Act, 2013, can be utilized for various purposes including writing off preliminary expenses, expenses of debentures, and premiums on the redemption of redeemable preference shares or debentures.
Hence, the correct option is 4.
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