Question : As per Section 52 of Companies Act 2013, Securities Premium Reserve cannot be utilised for ___________.

Option 1: Writing off capital losses.

Option 2: Issue of fully paid bonus shares.

Option 3: Writing off discount on issue of securities.

Option 4: Writing off preliminary expenses.

Question : The Company will pay a premium at the time of their redemption. Although such premium will be paid at the time of actual redemption, as it is a known ------- the Company records such loss at the time of issue by -------- an account called, ------------------------.

Option 1: Profit, debiting, loss on issue of debentures 

Option 2: Loss, credited, loss on issue of debentures 

Option 3: Loss, debiting, loss on issue of debentures 

Option 4: Loss, debiting, premium on redemption of debentures

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 : KTR Ltd., issued 365, 9% Debentures of Rs. 1,000 each on 4th March, 2016 at 6% discount, redeemable at 5% premium. Loss on issue of Debentures debited/credited with _____________.

Option 1: Loss on issue of debentures account debited with Rs.36,500

Option 2: Loss on issue of debentures credited with Rs.41,150
 

Option 3: Loss on issue of Debentures debited with Rs. 41,150
 

Option 4: Loss on issue of debentures debited with Rs. 40,150
 

Question : Which of the following statements is false?  

Option 1: Loss on Issue of Debentures is debited at the time of issue of debentures following the Prudence Concept of Accounting.

Option 2: Loss on Issue of Debentures is written off from Securities Premium Reserve, if it exists and thereafter from Statement of Profit and Loss.

Option 3: Loss on Issue of Debentures Account is an Expense Account and Premium on Redemption of Debentures Account is a Liability Account.

Option 4: Premium on Redemption of Debentures Account is credited at the time of payment, i.e., on redemption of debentures.