The premium amount collected from issue of shares can be used for the following purposes:

(A) To purchase own shares.

(B) To issue fully paid bonus shares to the extent not exceeding unissued share capital of the company.

(C) To write-off preliminary expenses of the company.

(D) To write-off fixed assets from books.

Choose the correct answer from the options given below:

(A), (B) and (C) only

Correct answer: Option (1) → (A), (B) and (C) only

Concept: Uses of the Securities Premium under Section 52 of the Companies Act, 2013, from Accounting for Share Capital.

Securities premium may be applied only to: (A) buy back (purchase) its own shares, (B) issue fully paid bonus shares, and (C) write off preliminary expenses (it may also write off issue expenses/commission/discount and pay premium on redemption of preference shares or debentures). It CANNOT be used (D) to write off fixed assets from the books. Hence (A), (B) and (C) only, Option (1).