Company Accounts

Share Capital

Easy

common

The amount of security premium cannot be used for:

Issuing fully paid bonus shares to the extent not exceeding unissued share capital of the company.

Buy-back of own shares.

Paying premium on the redemption of preference shares or debentures of the company.

Purchase of assets of the company.

✅ Correct Option: 4

Section 52 of the Companies Act, 2013 permits use of Securities Premium for bonus shares, writing off preliminary expenses and issue expenses, premium on redemption of preference shares or debentures, and buy-back of shares. Purchasing assets of the company is not a permitted use.

2025: 22 May Shift 1

Which of the following is incorrect about the minimum subscription:

Minimum subscription is the minimum amount that, in the opinion of directors, must be raised to meet the needs of business operations of the company relating to:

2022: 16 July Shift 2

The Balance Sheet of the company will show authorised capital of the company as _______ .

2026: 31 May Shift 1

In the case of issue of shares, the amount on any call should not exceed .......... of the face value of shares.

2025: 15 May Shift 1

The director of Priya polymer Limited resolved that 200 equity shares of Rs. 100 each be forfeited for non-payment of the second and final call of Rs. 30 per share. Out of these, 150 shares were re-issued at Rs. 60 per share to Monit. The amount of capital reserve will be:

2026: 11 May Shift 2

Arrange following important steps being used in the procedure of share issue:

A. Receipt of Applications

B. Allotment of shares

C. Issue of Prospectus

D. Receipt of Minimum subscription

Choose the correct answer from the options given below:

2026: 31 May Shift 1

In the case of companies limited by shares, the liability of its members is:

The amount of security premium cannot be used for:

Solution

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