Premium on issue of shares can be used for: Option 1: issue of bonus shares Option 2: distribution of profits Option 3: transferring to general reserve Option 4: none of the above

The answer is 'issue of bonus shares'. View full solution:

CUET Accountancy - Premium on issue of shares can be used for: | PYQs + Solutions

CUET Accountancy 2022 8 Aug Shift 2

Company Accounts

Medium

issue of bonus shares

distribution of profits

transferring to general reserve

none of the above

✅ Correct Option: 1

Related questions:

22 May Shift 2

Part of the subscribed capital which has been called up on the shares, i.e., what the company has asked the shareholders to pay is known as ……….

30 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Under Subscription	(I) Issue of Shares at an amount more than the nominal or par value of shares.
(B) Issue of Shares at a Premium	(II) It is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription.
(C) Over Subscription	(III) The amount so received from the shareholders when shareholders pay a part or the whole of the amount of the calls not yet made.
(D) Calls in Advance	(IV) when applications for more shares of a company are received than the number offered to the public for subscription.

Choose the correct answer from the options given below:

15 May Shift 1

Securities Premium Account can be used only for the following purposes:

(A) To issue partly paid bonus shares to the extent not exceeding unissued share capital of the company;

(B). Buy back of own shares.

(C). To write-off the expenses of, or commission paid, or discount allowed on any securities of the company;

(D). To pay premium on the redemption of preference shares or debentures of the company.

Choose the correct answer from the options given below: