Company Accounts

Share Capital

Medium

Premium on issue of shares can be used for:

issue of bonus shares

distribution of profits

transferring to general reserve

none of the above

✅ Correct Option: 1

Securities Premium is a capital receipt and its use is restricted by Section 52 of the Companies Act, 2013. Permitted uses include issuing fully paid bonus shares, writing off preliminary expenses, writing off discount/expenses on issue of shares/debentures, providing for premium on redemption, and buy-back of shares. It cannot be distributed as profit or transferred to general reserve.

2025: 30 May Shift 2

Shares can be forfeited:

2025: 29 May Shift 2

In case of over subscription, the directors may

(A). Accept some applications in full and reject excessive applications.

(B). They can make pro-rata allotment to all.

(C). They can adopt a combination of the above two alternatives.

(D). They can make preferential allotment to some applicants.

2025: 3 June Shift 1

Shares can be forfeited :

2025: 26 May Shift 2

Sahil, a share holder, failed to pay the money for second and final call of Rs. 20 on 1,000 shares issued to him at Rs. 120 (face value of Rs. 100 per share). His shares were forfeited after the second and final call. Which is correct about share forfeiture:

2026: 24 May Shift 1

Accountant of a company provides the following steps regarding issue of shares. Arrange them in proper sequence.

(A) Calls in Arrear

(B) Forfeiture of Shares

(D) Reissue of Shares

Choose the correct answer from the options given below:

2025: 14 May Shift 1

Arrange the following capitals in correct sequence as they appears in notes to account-

(A) Subscribed and Not Fully paid-up

(B) Subscribed and Fully paid-up

(D) Nominal Capital

Choose the correct answer from the options given below:

Premium on issue of shares can be used for:

Solution

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