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:
Show Hint
Always refer to Section 52 of the Companies Act, 2013 for permissible uses of the Securities Premium Account.
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
Hide Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
According to the Companies Act, 2013, the Securities Premium Account can be utilized for:
1. Writing off preliminary expenses.
2. Writing off discount on the issue of shares or debentures.
3. Issuing fully paid bonus shares to shareholders.
4. Buyback of shares.
The Securities Premium Account cannot be used for issuing partly paid bonus shares.
Was this answer helpful?
0
0
Top Questions on Debentures
- Ajanta Ltd. purchased machinery worth Rs 36,00,000 from Sujata Ltd. Ajanta Ltd. paid half the amount to Sujata Ltd. through a bank draft and the balance by issuing 8\% debentures of Rs 100 each at a discount of 10\%. Pass the necessary journal entries in the books of Ajanta Ltd. for the above transactions.
- Ridyum Limited issued 5,000, 9\% debentures of Rs 500 each at a premium of 10\%. The amount was payable as follows:
On Application - Rs 200 per debenture
On Allotment – Balance (including premium)
The debentures were fully subscribed and all amounts were duly received. Pass the necessary journal entries for issue of debentures in the books of Ridyum Limited. - Apoorv Ltd. acquired building worth Rs 15,50,000, Machinery worth Rs 11,40,000 and Furniture worth Rs 1,10,000 from Dhruv Ltd. and took over its liabilities of Rs 2,00,000 for a purchase consideration of Rs 25,00,000. Apoorv Ltd. paid the purchase consideration by issuing 12\% debentures of Rs 100 each at a premium of 25\%. Pass the necessary journal entries in the books of Apoorv Ltd. for the above transactions.
- If the amount of debentures issued is more than the amount of the net assets taken over by a company, the difference will be treated as :
- The following journal entry appears in the books of Latvion Ltd. :
\vspace{0.2cm} \begin{tabular}{|l|r|r|} \hline Particulars & Dr. Amount (Rs) & Cr. Amount (Rs)
\hline Bank A/c \hspace{5cm} Dr. & 4,75,000 &
Loss on issue of debentures A/c \hspace{1.9cm} Dr. & 75,000 &
\indent To 12\% Debentures A/c & & 5,00,000
\indent To Premium on Redemption of Debentures A/c & & 50,000
\hline \end{tabular}
\vspace{0.2cm} The discount on issue of debentures is :
View More Questions
Questions Asked in CBSE CLASS XII exam
- Using integration, find the area of the region bounded by the line \[ y = 5x + 2, \] the \( x \)-axis, and the ordinates \( x = -2 \) and \( x = 2 \).
- CBSE CLASS XII - 2025
- Evaluation of Definite Integrals by Substitution
- In case the total cost of a machine less installation charges is greater than Rs 2,00,000, then 20% depreciation is charged, and if total cost of the machine is less than Rs 2,00,000 then 10% depreciation is charged.
Write the steps to create the 'IF' function using the Formula tab and dialogue box on a given spreadsheet. Also, write the syntax of the result.- CBSE CLASS XII - 2025
- Computerised Accounting
- State the advantages of 'Pivot Table' report.
- CBSE CLASS XII - 2025
- Basic Knowledge of Excel
- To see all available shape styles which of the following button is clicked ?
- CBSE CLASS XII - 2025
- Computerised Accounting
- Which of the following is a part of Asset group 'Current Assets' in account group of Assets?
- CBSE CLASS XII - 2025
- Computerised Accounting
View More Questions