Question

1. Which of the following cannot be utilized for the redemption of preference shares of a company
a) Proceeds of fresh issue of shares
b) General Reserve
c) Profit and Loss Account
d) Securities premium on fresh issue of shares​

Answer 1

Answer:

The correct answer here is-

D)  Securities premium on fresh issue of shares​

Answer 2

Answer:

Securities premium on fresh issue of shares​ cannot be utilized for the redemption of preference shares of a company.

Explanation:

Shares can be renewed for each payment or for a premium. if the share is renewed at a premium or profit is provided without a security or profit and loss account or a regular account. processed new debt releases cannot be used for redemption.