State the purposes for which balance in securities premium account can be utilised.

CS Executive · Company Accounts & Auditing Practices · PYQS · June 2016
State the purposes for which balance in securities premium account can be utilised.

Answer & Explanation:

The Securities Premium Account may be applied by the company for following purposes: towards the issue of fully paid bonus shares to the existing shareholders of the company; in writing off the preliminary expenses of the company; in writing off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company; for the purchase of its own shares or other securities.

Topics: Company Accounts

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