Question

As per the provisions of Companies Act, 2013 Securities Premium cannot be utilized for:

• A. Buy back of shares
• B. Issue of partly paid bonus shares
• C. Writing off discount on issue of debentures
• D. Writing off preliminary expenses

Hint:

Remember the permitted uses of the Securities Premium Account under Section 52 of the Companies Act, 2013, as they are crucial for accounting compliance.

Answer 1

The Correct Option is B

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.