Premium received on issue of shares cannot be utilised for ........

Accountancy (Phase -I & II) Accounting for Shares

Download Solution PDF

Premium received on issue of shares cannot be utilised for ---------.

for the issue of bonus shares

for writing of preliminary expenses

for providing premium payable on redemption

for distribution of dividend

छोटे Courses बड़े Results

Master Accounting for Shares

Prepare through Micro-courses

Try Now

Explanation:

Securities Premium Account can be used for writing off any preliminary expenses of the company. To write off expenses of issue of shares and debentures, such as commission paid or discount given on the issue of shares. And finally, it can be utilized by the company to buy back its own shares