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Authorised Share Capital

Premium on re...

Question

Premium on redemption of preference shares can be provided out of _________.

A

Securities premium account

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B

Capital reserve account

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C

General reserve account

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D

All of the above

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Solution

The correct option is D All of the above
Premium on redemption of share is the amount paid to the preference shareholders over the face value of the shares.
Any premium on redemption of preference shares shall be be provided out of profits ,share premium account, capital reserve and general reserve account.

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