HomeTestsSearchRankProfile
mediumMCQCUET Accountancy 2022 8 Aug Shift 22026Accountancy
1 mark

Premium on issue of shares can be used for:

  1. A
    issue of bonus shares
  2. B
    distribution of profits
  3. C
    transferring to general reserve
  4. D
    none of the above

Solution & Step-by-step Explanation

Under Section 52(2) of the Companies Act, Securities Premium can be utilized for issuing fully paid bonus shares to the members of the company, among other restricted uses.

Practice this question

Try it yourself before checking the explanation above.

Premium on issue of shares can be used for:
A
issue of bonus shares
B
distribution of profits
C
transferring to general reserve
D
none of the above

Share This Question

Company AccountsShare Capital

Related Questions

easyMCQ

Which one of the following statements is true?

easyMCQ

Which of the following statements is not correct?

easyMCQ

Which one of the following statements is correct?

easyMCQ

The product formed by the reaction of an aldehyde with a primary amine is:

easyMCQ

Which part of the tobacco plant is infected by Meloidogyne incognita?

easyMCQ

The term ecosystem was coined by:

Ready for a Full Test?

Practice with timed mock tests and track your performance across Accountancy.

Browse TestsLeaderboard

Discussion