For the companies whose financial statements comply with the accounting standards as prescribed in Section 133 of the Companies Act, 2013, the premium payable on redemption of preference shares shall be provided out of:

CS Executive · Corporate and Management Accounting · PYQS · December 2019
For the companies whose financial statements comply with the accounting standards as prescribed in Section 133 of the Companies Act, 2013, the premium payable on redemption of preference shares shall be provided out of:
(A) the profits of the company only
(B) the securities premium only
(C) any of either profits of the company or securities premium
(D) none of the above

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Company Accounts

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