Can ‘securities premium reserve’ be distributed as dividend? Post category:Accountancy Reading time:1 mins read SOLUTION Amount of securities premium reserve cannot be distributed as dividend. It can only be used for the purposes listed under Section 52 of the Companies Act. Please Share This Share this content Opens in a new window Twitter Opens in a new window Facebook Opens in a new window Google+ Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostCan a Company issue a share having face value of Rs. 10 at Rs. 97 Next PostCan ‘Securities Premium Reserve’ be used as working capital? Give reason in support of your answer. You Might Also Like ‘G Ltd.’ is carrying on a paper manufacturing business. In the current year, it purchased machinery for Rs. 30,00,000; it paid salaries of Rs. 60,000 to its employees; it required funds for expansion and therefore, issued shares of Rs. 20,00,000. It earned a profit of Rs. 9,00,000 for the current year. Find out Cash Flow from Operating Activities. October 6, 2022 How are mutual relations of partners governed in the absence of Partnership Deed? September 23, 2022 Telecom Ltd.’ issued 20,000 Equity Shares of Rs. 10 each at a premium of Rs. 5 per share, payable as: Rs. 7 (including premium) on application, Rs. 5 on allotment and the balance after three months of allotment. A shareholder to whom 200 shares were allotted failed to pay the allotment and call money and his shares were forfeited. 160 of the forfeited shares were reissued for Rs. 1,600. Give necessary entries in company’s Journal and the Balance Sheet. July 15, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
‘G Ltd.’ is carrying on a paper manufacturing business. In the current year, it purchased machinery for Rs. 30,00,000; it paid salaries of Rs. 60,000 to its employees; it required funds for expansion and therefore, issued shares of Rs. 20,00,000. It earned a profit of Rs. 9,00,000 for the current year. Find out Cash Flow from Operating Activities. October 6, 2022
Telecom Ltd.’ issued 20,000 Equity Shares of Rs. 10 each at a premium of Rs. 5 per share, payable as: Rs. 7 (including premium) on application, Rs. 5 on allotment and the balance after three months of allotment. A shareholder to whom 200 shares were allotted failed to pay the allotment and call money and his shares were forfeited. 160 of the forfeited shares were reissued for Rs. 1,600. Give necessary entries in company’s Journal and the Balance Sheet. July 15, 2022