Question
Accountancy Question on Basics of Accounting
Securities premium cannot be used:
A
for issuing fully paid Bonus shares
B
to write-off preliminary expenses of the company
C
to pay premium on redemption of shares or debentures of company
D
to pay dividend to the shareholder of company
Answer
to pay dividend to the shareholder of company
Explanation
Solution
The correct option is (D):to pay dividend to the shareholder of company