Securities Premium Account
This query is : Resolved
31 May 2008
A company has issued QIP & warrants. for the same company has paid commission of Rs.2500000/-to lead managers.Right now we are showing it under miscellaneous expenditure not written off. Can it be deducted from Securities Premium Account as section 78 of Company Act,1956.
02 June 2008
it can be done as such adjustment is permissible as per sec.78 as it states that securities premium can be utilised for
1) writting off preliminary expenses, disc. on issue of debentures,
2) paying premium on redemption of preference shares, debentures,
3) for issuing fully paid up bonus shares,
4) for paying expenses on underwriting of shares and debentures.
as per item 4) you can adjust the comm from securities premium account.
1) writting off preliminary expenses, disc. on issue of debentures,
2) paying premium on redemption of preference shares, debentures,
3) for issuing fully paid up bonus shares,
4) for paying expenses on underwriting of shares and debentures.
as per item 4) you can adjust the comm from securities premium account.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
