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CUET Accountancy 2025 PYQs2 June Shift 2. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 2 June Shift 2

Share Capital

past year questions, Company Accounts, CUET Accountancy 2025 2 June Shift 2

Medium

common

Securities premium can be utilized for

(A) Writing of preliminary expenses.

(B) Issue of bonus share.

(C) Payment of dividends.

(D) Buy back of shares.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 1

Securities Premium Account is created when shares are issued at a price higher than their face value. As per Section 52 of the Companies Act, 2013, this account has specific permitted uses.

Permitted Uses of Securities Premium:

(A) Writing off preliminary expenses - Allowed ✓

The company can use securities premium to write off expenses incurred before incorporation.

(B) Issue of bonus shares - Allowed ✓

Securities premium can be used to issue fully paid bonus shares to existing shareholders.

(D) Buy back of shares - Allowed ✓

As per Section 68, securities premium can be utilized for buying back the company's own shares.

Not Permitted:

(C) Payment of dividends - Not Allowed ✗

Securities premium is a capital reserve, not a revenue profit. Dividends can only be declared out of revenue profits. Using securities premium for dividend payment would amount to distribution of capital, which is prohibited.

Since securities premium can be used for (A), (B), and (D) only, Option 1 is correct.

Related questions:

2025: 24 May Shift 1

According to 'Table F', interest on calls-in-arrears is charged at:

2025: 22 May Shift 2

Arrange the following steps related to the issue of shares in proper sequence.

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(B) Receipt of Applications

(C) Issue of Prospectus

(D) Share calls

Choose the correct answer from the options given below:

2026: 11 May Shift 1

150 shares of Mr. Ram of Rs.10 each issued at a premium of Rs.4 per share payable with allotment were forfeited for non-payment of allotment money of Rs.8 per share including premium. The first and final call of Rs.4 per share was not made. The forfeited shares were reissued at Rs.15 per share fully paid-up. Calculate the amount transferred to capital reserve.

2025: 15 May Shift 2

Match List-I with List-II

List-IList-II
(A) Calls in Advance A/c Dr. To Particular Call A/c(I) For Interest due on Calls in Advance
(B) Interest on Calls in Advance A/c Dr. To Sundry Shareholder's A/c(II) For Interest Paid on Calls in Advance
(C) Sundry Shareholder's A/c Dr. To Bank A/c(III) Calls in advance adjusted with the call money due
(D) Bank A/c Dr. To Calls in Arrears A/c To Interest on Calls in Arrears A/c(IV) Calls in arrears received with interest

Choose the correct answer from the options given below:

2022: 8 Aug Shift 2

Amalgamation is a form of:

2025: 3 June Shift 1

Match List-I with List-II

List–IList–II
(A) Authorized capital(I) Mentioned in Prospectus.
(B) Issued capital.(II) Mentioned in Memorandum of Association.
(C) Subscribed capital.(III) called up capital–calls in arrears.
(D) Paid up capital.(IV) Capital for which application is received.

Choose the correct answer from the options given below:

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