Section 52(2) permits use of Securities Premium for: writing off preliminary expenses, issuing bonus shares, writing off expenses or commission on issue of shares/debentures, paying premium on redemption, and buy-back of securities. Trading discount on goods sold is never written off from Securities Premium.
Securities Premium Reserve as per section 52(2) of the companies Act 2013 can be used : (A) To write-off preliminary expenses of the company (B) To…
CUET UG 2022 — Accountancy Company Accounts
2022mcqmedium
Securities Premium Reserve as per section 52(2) of the companies Act 2013 can be used :
(A) To write-off preliminary expenses of the company
(B) To issue fully paid bonus shares to the extent not exceeding unissued share capital of the company
(C) To pay premium on the redemption of preference shares or debentures
(D) To write off discount allowed on the goods sold on credit
Choose the correct answer from the options given below :
Official previous-year question
Held on 23 Aug 2022 · Verified 13 Jul 2026.
Options
- A
(A), (B) and (D) only
- B
(B), (C) and (D) only
- C
(A), (C) and (D) only
- D
(A), (B) and (C) only
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