Question:
As per the provisions of Companies Act, 2013 Securities Premium cannot be utilized for:
As per the provisions of Companies Act, 2013 Securities Premium cannot be utilized for:
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Remember the permitted uses of the Securities Premium Account under Section 52 of the Companies Act, 2013, as they are crucial for accounting compliance.
Updated On: Jan 28, 2025
- Buy back of shares
- Issue of partly paid bonus shares
- Writing off discount on issue of debentures
- Writing off preliminary expenses
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The Correct Option is B
Solution and Explanation
As per Section 52 of the Companies Act, 2013, the Securities Premium Account can be utilized for the following purposes:
- Issuing fully paid bonus shares.
- Writing off preliminary expenses.
- Writing off the discount on the issue of debentures.
- Buyback of shares.
It cannot be utilized for issuing partly paid bonus shares.
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