Question

balance of securities premium can be utilized for :​

Answer 1

Securities Premium Account can be used for writing off any preliminary expenses of the company. ... The balance can also be used to provide for the premium that is payable on the redemption of debentures or of preference shares of the company. And finally, it can be utilized by the company to buy back its own shares.

Answer 2

Answer:

ACCOUNTANCY

The balance of Securities Premium Account can be utilized _______________________.

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ANSWER

The account can only be used for such specific purposes and no other purpose. To issue fully paid-up bonus shares to its existing shareholders. The balance canalso be used to provide for the premium that is payable on the redemption of debentures or of preference shares of the company.

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