The securities premium account is a reserve account that is created when a company issues shares at a premium, i.e., at a price higher than the face value of the shares. The amount received as premium is credited to this account. According to the Companies Act, the securities premium account can be utilized for specific purposes, such as writing off the expenses of, or the commission paid or discount allowed on any issue of equity shares of the company, or for the purpose of issuing fully paid bonus shares to the members of the company.
However, the securities premium account cannot be applied for writing off the debit balance in the Profit & Loss account, as this would amount to the distribution of profits, which is not a permitted use of the securities premium account. The debit balance in the Profit & Loss account represents accumulated losses, and writing it off would require a transfer from a revenue profit or other distributable reserves, not from the securities premium account, which is a capital reserve.
In contrast, options B, C, and D represent permitted uses of the securities premium account. Option B is allowed as per the Companies Act, which permits the utilization of the securities premium account for writing off the expenses of, or the commission paid or discount allowed on any issue of equity shares of the company.
Option D is also a permitted use, as the securities premium account can be used for issuing fully paid bonus shares to the members of the company.
Option C, although not directly related to the typical uses of the securities premium account, is also a correct statement in the context of what the securities premium account cannot be used for, as per section 68, which deals with the purchase of its own shares by a company, but this is not the best answer among the given options in this context.
Hence, **Option A** is the correct answer.