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Answer

The amount of securities premium can be utilised for the following purposes:
1) For writing-off the preliminary expenses of the company.
2) For writing-off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company.
3) For paying up the premium payable on redemption of redeemable preference shares or debentures of the company.

Q7 P1 Page -

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The amount of securities premium can be utilised for the following purposes:
1) For writing-off the preliminary expenses of the company.
2) For writing-off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company.
3) For paying up the premium payable on redemption of redeemable preference shares or debentures of the company.

Q7 P1 Page -

Answer

The amount of securities premium can be utilised for the following purposes:
1) For writing-off the preliminary expenses of the company.
2) For writing-off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company.
3) For paying up the premium payable on redemption of redeemable preference shares or debentures of the company.

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