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Question
Premium received on issue of debentures may be utilised for writing off:
Options
Premium allowed on redemption of debentures
Preliminary expenses
Discount allowed on the issue of shares
All of the above
MCQ
Solution
Preliminary expenses
Explanation:
Premium received on debenture issuance may be used to write off premium granted on debenture redemption, as well as write off preliminary expenses. Writing off a discount allowed on a share or debenture issuance, writing off expenditures or a commission paid, or writing off a discount allowed on any share or debenture issue, and so on.
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Issue of Debentures
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