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Commerce · Q1333

Accounting

Graduate and Post Graduate · Commerce · question 1333

Q1333

Which one of the following statements is incorrect?

A.
Share premium received on issue of shares can be utilized for writing off the preliminary expenses
B.
Capital Redemption Reserve is available only for issuing fully paid Bonus Shares
C.
Discount on issue of shares is shown as a reduction from capital
Answer
D.
At the time of Right issue, the existing share holders gain because the share are generally issued at a price lower than the market price

Answer: Option C

Solution

Answer: Option C
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