Accounting for shares Important Questions in corporate Accounting

1. Everyone
h e O
L L

2. Welcome back
to my YouTube
channel
Prof Raman Dhiman

3. Important
Questions for
b.com
corporate
Accounting

12. Question: give a
purpose for
which security
premium
account can be
applied by the
company?

16. State the legal provisions of securities premium
account ?
According to Section 52 of the Act, securities premium
can be used for the following purposes: For the issue of
fully paid bonus share capital. For meeting the
preliminary expenses incurred by the company. For
meeting the expenses, commission or discount
incurred concerning securities previously issued by the
company.

18. ESOP?
The Employee Stock Option Plan (ESOP) is an employee
benefit plan. It is issued by the company for its employees
to encourage employee ownership in the company. The
shares of the companies are given to the employees at
discounted rates. Any company can issue ESOP.