[Solved] Amount of share premium may be utilized for

Amount of share premium may be utilized for

a) Payment of dividend

b) Writing of preliminary expenses

c) Routine expenses

d) Purchase of fixed assets

Answer: (b) Amount of share premium may be utilized for the writing off preliminary expenses. As per section 52(2) of the Companies Act, 2013, Share or Security Premium can be used for writing off Preliminary Expenses. It cannot be used either for writing off a loss on sale assets or bad debts.

More MCQ and Answers on Auditing

  1. A vacancy caused by resignation of the auditor is filled by
  2. A company auditor can be removed before expiry of his term by
  3. Remuneration of a company auditor is fixed by the
  4. A company auditor, in general has to submit his report to
  5. An auditor of Government company has to submit his report to the
  6. Internal auditor has to submit report to
  7. Auditor should be dutiful like a
  8. Auditor, in general is an
  9. Which of the following percentage of nominal amount of shares should be received with application
  10. While checking allotment, auditor should see that amount

Comments