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Accounting for Share Capital — Accountancy STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceAccountancyAccounting for Share Capital1 Mark
Question
Assertion [A] :
Amount received on shares as 'Secterities Premium’ can be utilized to write off the 'Share Issue Expenses'.
Reason (R):
Amount of Securities Premium can be utilized only for the purposes which are specified in the Section 52 (2) of the Companies Act, 2013.
Choose the Correct Option from the following:
✓

Answer

Assertion and Reason both are correct and Reason is the correct explanation of the assertion

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