Securities Premium Reserve can be used for the following purposes:
(A) To issue fully paid bonus shares
(B) To write-off preliminary expenses of the company
(C) To pay premium on the redemption of preference shares and debentures of the company
(D) To distribute as a dividend to share holders
(E) To write-off company losses
Choose the correct answer from the options given below:
(
This question was previously asked in
Shift 01/06/2023 8:30 AM - 11:30 AM
A
(A), (B) and (E) only
B
(A), (B) and (D) only
C
(A), (B) and (C) only
D
(C), (D) and (E) only
Correct Answer
(A), (B) and (C) only
Detailed Explanation
The Securities Premium Reserve can be utilized for the following purposes:
- (A) To issue fully paid bonus shares
- (B) To write off preliminary expenses of the company
- (C) To pay premium on the redemption of preference shares and debentures of the company
Therefore, the correct answer is:
(3) (A), (B) and (C) only
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