Practicing Success
Practicing Success
CUET Preparation Today
| Debenture premium received on issue of debentures cannot be used for which of the following? |
Write off the discount on issue of shares or debentures Write off the premium on redemption of shares or debentures Write off capital loss All of the above |
| Write off capital loss |
| Section 52 of the Companies Act, 2013 states that the security premium can only be utilized or for the following purposes: For the issue of fully paid bonus share capital For meeting the preliminary expenses incurred by the company For meeting the expenses, commission or discount incurred concerning securities previously issued by the company For ensuring the availability of the premium on the redemption of redeemable debentures or preference share capital of the company For funding a scheme or buy-back of securities which is conducted in compliance with the provisions of Section 68 of the Companies Act Thus, it cannot be used either for writing off loss on sale assets or bad debts. |
