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प्रश्न
Short Answer Question
What are the uses of securities premium?
उत्तर
As per the Section 78 of the Companies Act of 1956, the amount of securities premium can be used by the company for the following activities:
1. For paying up un issued shares of the company to be issued to members (shareholders) of the company as fully paid bonus share,
2. For writing off the preliminary expenses of the company,
3. For writing off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company,
4. For paying up the premium that is to be payable on redemption of preference shares or debentures of the company.
5. Further, as per the Section 77A, the securities premium amount can also be utilised by the company to Buy-back its own shares.
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संबंधित प्रश्न
Long Answer Question
Explain the terms ‘Over-subscription’ and ‘Under-subscription’. How are they dealt with in accounting records?
Alpha Ltd. issued 20,000 Equity Shares of ₹ 10 each at par payable: On application ₹ 2 per share; on allotment ₹ 3 per share; on first call ₹ 3 per share; on second and final call ₹ 2 per share.
Mr. Gupta was allotted 100 shares. Pass necessary Journal entry relating to the forfeiture of shares in each of the following alternative cases:
| Case I | If Mr. Gupta failed to pay the allotment money and his shares were immediately forfeited. |
| Case II | If Mr. Gupta failed to pay allotment money and on his subsequent failure to pay the first call, his shares were forfeited. |
| Case III | If Mr. Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited |
Answer in One Sentence only:
To which account balance on Depreciation A/c is transferred?
State whether the following statement is True or False with reasons:
Balance of depreciation account is transferred to Profit & Loss A/c.
When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______.
Newfound Ltd took over business of Old land ltd and paid for it by issue of 30,000, Equity Shares of ₹100 each at a par along with 6% Preference Shares of ₹1,00,00,000 at a premium of 5% and a cheque of ₹8,00,000. What was the total agreed purchase consideration payable to Old Land ltd.
What will be the time interval between the making of two calls from the shareholders of the company?
Calls in-Arrears represents which kind of balance of all the calls account and are shown as deduction from the paid-up capital on the ______ side of the balance sheet.
What is the rate of interest on calls in advance if an article of association of the company is silent?
When applications for more shares of a company are received than the number of shares offered to the public for a subscription it is called ______?
Where number of shares applied for Subscription is less thah the number for which applications have been invited for subscription this situation is called?
For which of the following purposes the amount of securities premium can be utilized?
What would be the Journal entries for shares issued at a premium called at the time of application?
Right shares are the shares, which:
Share Allotment Account is a/an ______.
A company issues its shares at a premium under which Section of Indian Companies Act, 2013?
Which statement is issued before the issue of shares?
Premium on issue of shares is shown on which side of the Balance sheet?
Based on below information you are required to answer the following question:
Sangita Limited invited applications for issuing 60,000 shares of ₹ 10 each at par. The amount was payable as follows:
On Application ₹ 2 per share
On Allotment ₹ 3 per share
On First and Final Call ₹ 5 per share
Applications were received for 92,000 shares. Allotment was made on the following basis:
- To applicants for 40,000 shares - Full
- To applicants for 50,000 shares - 40%
- To applicants for 2,000 shares - Nil
₹ 1,08,000 was realised on account of allotment (excluding the amount carried from application money) and ₹ 2,50,000 on account of call.
The directors decided to forfeit shares of those applicants to whom full allotment was made and on which allotment money was overdue.
What amount is received at the time of first and final call?
