which of the item for which the amount of security premium cannot be used?ANSWER:- TO PAY THE BANK OVERDRAFT ​

Answers 2

Securities premium is a capital amount. Hence, securities premium cannot be used as a source to declare a dividend. The Companies Act allows bonus shares to be issued from the securities premium. However, the issue should be authorised by the members of the company.

Answer:

to pay the bank overdraft

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