Company Accounts

Share Capital

Easy

Securities premium cannot be used:

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

Section 52 of the Companies Act, 2013 restricts the use of Securities Premium to specified purposes such as issuing bonus shares, writing off preliminary expenses and paying premium on redemption. It cannot be used for paying dividend to shareholders.

2025: 29 May Shift 2

When Calls in Advance Account is adjusted _______ is credited and _______ is debited.

2026: 11 May Shift 2

The balance in 'Calls in Advance' account is shown as a separate item under the title Equity and Liabilities in the company's balance sheet, identify the same.

2025: 3 June Shift 1

R Ltd purchased a building from X Infra for Rs 6,00,000 and the payment is to be made by the issue of shares for Rs 100 each at a premium of 20%. Calculate the number of shares to be issued.

2023: 29 May Shift 2

When a company issues shares in open market and the amount is payable in instalments. What is the sequence of amount demanded by the company?

A. Money received on calls

B. Money due on calls

C. Allotment money received

D. Application money transferred to Share Capital A/c

E. Allotment money due.

Choose the correct answer from the options given below:

2025: 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:

2026: 11 May Shift 2

Applications Supported by Blocked Amount (ASBA) is a process developed by.......................to apply for subscribing to IPOs and Rights Issue etc. of securities.

Securities premium cannot be used:

Solution

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