Securities premium cannot be used: Option 1: for issuing fully paid Bonus shares Option 2: to write-off preliminary expenses of the company Option 3: to pay premium on redemption of shares or debentures of company Option 4: to pay dividend to the shareholder of company

The answer is 'to pay dividend to the shareholder of company'. View full solution:

CUET Accountancy - Securities premium cannot be used: | PYQs + Solutions

CUET Accountancy 2023 20 June Shift 2

Company Accounts

Easy

for issuing fully paid Bonus shares

to write-off preliminary expenses of the company

to pay premium on redemption of shares or debentures of company

to pay dividend to the shareholder of company

✅ Correct Option: 4