Question : The amount of Securities Premium Reserve Account is utilised for the purposes specified in Section 52(2) of the Companies Act, 2013. The purposes for which Securities Premium Reserve can be used are:

Option 1:

for writing off preliminary expenses

Option 2: for writing off expenses of, or commission paid or discount allowed on debentures of the company

Option 3: for providing premium payable on the redemption of redeemable preference shares or debentures of the company

Option 4: All of the above

Question :  Securities Premium Reserve can be utilised for the purposes of

Option 1: Writing off preliminary expenses

Option 2: Writing off expenses such as share issue expenses, commission, discount allowed on issue of Securities

Option 3: Providing for the premium payable on redemption of debentures or Preference Shares

Option 4: All of the Above

Question : Home Products Ltd. issued on 1st April, 2019,10,000,9% Debentures of Rs. 100 each at a premium of 10% redeemable at a premium of 5% after 5 years. Issue price was payable along with application. Which of the following statements is correct? 

Option 1: Loss on issue of debenture account will be debited by Rs. 50,000
 

Option 2: Premium on Redemption of Debentures account credited by Rs. 50,000

Option 3: Premium of Redemption of Debentures  account will be credited by Rs. 1,00,000

Option 4: Securities premium account will be credited by Rs. 1,00,000

Question : Home Products Ltd. issued on 1st April, 2019,10,000,9% Debentures of Rs. 100 each at a premium of 10% redeemable at a premium of 5% after 5 years. Issue price was payable along with application. Which of the following statements is correct? 

Option 1: Loss on issue of debenture account will be debited by Rs. 50,000
 

Option 2: Premium on Redemption of Debentures account credited by Rs. 50,000

Option 3: Premium of Redemption of Debentures  account will be credited by Rs. 1,00,000

Option 4: Securities premium account will be credited by Rs. 1,00,000