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Premium received on issue of debentures may be utilised for writing off: -

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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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