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Why is ‘securities premium on issue’ treated as a capital profit in a joint stock company? - Accounts

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Why is ‘securities premium on issue’ treated as a capital profit in a joint stock company?

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उत्तर

Since it was not earned during regular business operations and cannot be distributed as a dividend, the securities premium on the issuance of shares is regarded by law as capital profit.

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अध्याय 6: Company Accounts - Issue of Shares - SHORT ANSWER QUESTIONS [पृष्ठ ६.१४७]

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डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
अध्याय 6 Company Accounts - Issue of Shares
SHORT ANSWER QUESTIONS | Q 23. | पृष्ठ ६.१४७
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