Accountancy, asked by sainigoudtalla9798, 6 months ago

premium on issue of shares can be used for what

Answers

Answered by Itzalien19
8

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.

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