banner_ad

Section 78 Securities Premium Account Utilization

This query is : Resolved 
Profile Image

Profile Image

(Querist)
05 March 2011 Dear Experts,

A Private Comapny had Securities Premium Account in its Balance Sheet. The Companay has issued fully paid Bonus Shares. In order to facilitate the Bonus Issue, it had to incur an expenditure to increase the authorised capital. It had also written off these expenses (ROC Expenses to increase authorised capital) to securities premium. Is it correct? Quick replies would be appreciated.

Thanking you in advance
Profile Image

CS ,CMA Shambhu Kr. jha

Profile Image

CS ,CMA Shambhu Kr. jha (Expert)
05 March 2011 As far it is not appropriate to write off that expanses from securities premium Account coz, once we received securities premium account it can only be adjusted against specified expanses as mentioned .

Profile Image

Bhaskaran Chackrapani Warrier

Profile Image

Bhaskaran Chackrapani Warrier (Expert)
05 March 2011 Prima facie,the company can do so by virtue of section 78(2)(c) of the Companies Act,1956.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details