Can ‘securities premium reserve’ be distributed as dividend? Post category:Accountancy Reading time:1 mins read SOLUTION Amount of securities premium reserve cannot be distributed as dividend. It can only be used for the purposes listed under Section 52 of the Companies Act. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostCan a Company issue a share having face value of Rs. 10 at Rs. 97 Next PostCan ‘Securities Premium Reserve’ be used as working capital? Give reason in support of your answer. You Might Also Like Asgar, Chaman and Dholu are partners in a firm. Their Capital Accounts stood at Rs. 6,00,000; Rs. 5,00,000 and Rs. 4,00,000 respectively on 1st April, 2021. They shared Profits and Losses in the proportion of 4: 2: 3. Partners are entitled to interest on capital @ 8% per annum and salary to Chaman and Dholu @ Rs. 7,000 per month and Rs. 10,000 per quarter respectively as per the provision of the Partnership Deed. Sholu’s share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of Rs. 1,10,000 p.a. Any deficiency arising on that account shall be met by Asgar. The profit for the year ended 31st March, 2021 amounted to Rs. 4,24,000. (Delhi 2013, Modified). Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2022. October 18, 2022 What is a Comparative Balance Sheet? October 1, 2022 M and J are partners in a firm sharing profits in the ratio of 3 : 2. They admit R as a new partner. The new profit-sharing ratio between M, J and R will be 5 : 3 : 2. R brought in Rs. 25,000 for his share of premium for goodwill. Pass necessary Journal entries for the treatment of goodwill. August 1, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Asgar, Chaman and Dholu are partners in a firm. Their Capital Accounts stood at Rs. 6,00,000; Rs. 5,00,000 and Rs. 4,00,000 respectively on 1st April, 2021. They shared Profits and Losses in the proportion of 4: 2: 3. Partners are entitled to interest on capital @ 8% per annum and salary to Chaman and Dholu @ Rs. 7,000 per month and Rs. 10,000 per quarter respectively as per the provision of the Partnership Deed. Sholu’s share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of Rs. 1,10,000 p.a. Any deficiency arising on that account shall be met by Asgar. The profit for the year ended 31st March, 2021 amounted to Rs. 4,24,000. (Delhi 2013, Modified). Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2022. October 18, 2022
M and J are partners in a firm sharing profits in the ratio of 3 : 2. They admit R as a new partner. The new profit-sharing ratio between M, J and R will be 5 : 3 : 2. R brought in Rs. 25,000 for his share of premium for goodwill. Pass necessary Journal entries for the treatment of goodwill. August 1, 2022