Auditing and EthicsMCQQuestion 6236 of 213

7. The securities premium account of PAWAN Ltd. cannot be applied for which of the following purposes ?

Select Your Answer (Keyboard: A, B, C, D)

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Correct Answer

✅ Option A — In writing off the debit balance in the Profit & Loss account.

All Options:

AIn writing off the debit balance in the Profit & Loss account. ✓
BIn writing off the expenses of, or the commission paid or discount allowed on any issue of equity shares of the company. AUDITING AND ETHICS 5 SUGGESTED ANSWER
CFor the purchase of its own shares or other securities under section 68.
DIn paying up unissued equity shares of the company to be issued to the members of the company as fully paid bonus shares.

Detailed Solution & Explanation

Correct Answer: Option **A** Explanation: As per the official suggested answer, option **A** is correct. Hence, **Option A** is the correct answer.

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