Company AccountsQ-5 | Introduction to Company AccountsQuestion 4885 of 112
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In the balance sheet of X Limited, preliminary expenses amounting to 5 lakhs and securities premium account of ₹ 35 lakhs are appearing. The accountant can use the balance in securities premium account to write off preliminary expenses. [Nov. 2020, 2 Marks]

Options

A
B
C
D
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Correct Answer

✅ Option — Correct Option

All Options:

  • A
  • B
  • C
  • D

Detailed Solution & Explanation

True: Section 52 of the Companies Act, 2013 allows that preliminary expenses may be written off through Securities Premium Account.

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