A Private Comapny had Securities Premium Account in its Balance Sheet. The Companay has issued fully paid Bonus Shares. In order to facilitate the Bonus Issue, it had to incur an expenditure to increase the authorised capital. It had also written off these expenses (ROC Expenses to increase authorised capital) to securities premium. Is it correct? Quick replies would be appreciated.
05 March 2011
As far it is not appropriate to write off that expanses from securities premium Account coz, once we received securities premium account it can only be adjusted against specified expanses as mentioned .
CAclubindia
