Share capital 3

Subscribe share capital can be less than or equal to the issued share capital but cannot be more

• True

• False

Shares are always issued at par

• True

• False

Securities premium received on issue of shares is credited to securities premium reserve account

• True

• False

Securities premium reserve is shown in the assets part of the balance sheet

• True

• False

Securities premium reserve can be used for issuing partly paid bonus shares

• True

• False

Securities premium reserve can be used for writing off preliminary expenses

• True

• False

Premium on issue of shares can be used for

• Issue of partly paid bonus shares

• Writing of losses incurred during the year

• Writing off discount/loss on issue of debentures

• Writing off past losses