Company Accounts

Share Capital

Easy

common

Securities Premium cannot be used for the following purpose:

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

To write-off preliminary expenses of the company.

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

Purchase of shares of some other company.

✅ Correct Option: 4

Section 52(2) of the Companies Act, 2013 permits Securities Premium to be used only for specified purposes such as issuing fully paid bonus shares, writing off preliminary expenses, writing off share or debenture issue expenses, commission or discount, providing the premium on redemption of preference shares or debentures, and buy-back. Buying shares of another company is not a permitted use.

2025: 24 May Shift 1

The period of how many month/months must elapse between two calls.

2026: 19 May Shift 1

Anu Ltd. invited applications for 30,000 Shares of Rs. 100 each at a premium of Rs. 20 per share payable as follows: On Application Rs. 40 (including Rs.10 premium), On Allotment Rs. 30 (including Rs.10 premium), On First Call Rs. 30 On Second and Final Call Rs. 20

Applications were received for 40,000 shares and pro-rata allotment was made on the application for 35,000 share. Excess application money was utilised towards allotment. Raju to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited immediately after allotment.

Find the amount of allotment not paid by Raju?

2023: 29 May Shift 2

Select the amount received on Share Allotment Account -

2025: 3 June Shift 2

There must be an interval of how many months between the making of two calls unless otherwise provided by the articles of association of the company.

2026: 6 June Shift 1

A share of Rs. 100 issued at Rs. 110 on which Rs. 70 (including premium) has been received is forfeited. What is the amount per share that will be transferred to capital reserve if share is reissued at Rs. 70 fully paid-up?

2022: 30 Aug Shift 2

If the company is unable to get minimum subscription, the shares cannot be issued and the amount must be refunded within 8 days from the date of closure. If not, company shall be liable to pay ______% interest p.a.

Securities Premium cannot be used for the following purpose:

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