security premium

When shares are issued at a premium the premium amount is credit to securities premium account.

Per section 78 of companies Act  the amount can be utilised for the below-

1) For issue of fully paid bonus shares

2)Write off preliminary expensess

3) Write off expensess or commission paid or discount allowed on any of the shares or debentures of the company

4)To provide premium on redemption of preference share

Also as per section 77A it can be utilised for any buy back of the shares.

In above cases the securities premium will be debited.  Hope I have answered your query

It is advisable to record Security premium on receipt basis rather than on due basis.