Question

From which account, expenses on issue of shares will be written off first of all:

विकल्प

• Statement of Profit and Loss

• Miscellaneous Expenditure Account

• Share Issue Expenses Account

• Securities Premium Account

Answer 1

Securities Premium Account

Explanation:

Share issue expenditures are costs associated with issuing shares, such as prospectus printing, underwriting commissions, broking, etc. These are initially written off against the Securities Premium Reserve (if available) in accordance with the Companies Act of 2013 and accounting treatment. Securities Premiums are written off from the Statement of Profit & Loss if they are not sufficient.