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 : 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 sum obtained as a premium on securities cannot be used for the following, according to Section 52(2) of the Companies Act, 2013:

Option 1: Writing off preliminary Expenses

Option 2: Buy back of its own shares

Option 3: Purchase of Fixed Assets

Option 4: Premium Payable on Redemption of Prefrence share

Question : Premium on issue of debentures can be used for ________.

Option 1: Issue of partly paid bonus share

Option 2: Writing off losses incurred during the year

Option 3: Writing off discount/loss on issue of debentures

Option 4: Writing off past losses

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.