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For which of the following purposes the amount of securities premium can be utilized? -

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Question

For which of the following purposes the amount of securities premium can be utilized?

Options

  • to issue fully paid bonus shares to an extent not exceeding unissued share capital of the company;

  • to write off preliminary expenses of the company

  • to write off the expenses of, or commission paid, or discount allowed on any of the shares or debentures of the company;

  • All of the above

MCQ

Solution

All of the above.

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Accounting Treatment for Share Capital
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