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प्रश्न
| Happy Days Ltd. was formed with an authorised capital of ₹50,00,000 divided into 5,00,000 equity shares of ₹10 each. The company issued prospectus inviting applications for 4,00,000 equity shares. The company received applications for 3,70,000 equity shares. During the first year, ₹8 per share were called. Suman holding 7,000 shares and Zia holding 5,000 shares did not pay the first call of ₹3 per share. Zia's shares were forfeited after the first call and later on 3,000 of the forfeited shares were re-issued at ₹7 per share, ₹8 called up. |
For what purpose securities premium account Cannot be utilized?
पर्याय
Amortization of preliminary expenses
Issue of Fully Paid Bonus Shares
Distribution of Dividend
Buy Back of own shares
MCQ
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उत्तर
Distribution of Dividend
Explanation:
As per Section 52(2) of the Companies Act, 2013, Securities Premium Account cannot be used for paying dividends.
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