On buy-back from free reserves, a sum equal to what is moved to CRR?
APremium paid on buy-back
BNominal value of shares
CMarket value of shares
DNet worth of company
Answer & Solution
Correct answer: B. Nominal value of shares
Section 69 requires transfer equal to the nominal value of shares purchased.
Keep practising Company Accounts
Browse all Company Accounts questions for CA Foundation, or explore more Accounting topics.
Related questions
Investors were historically given what as evidence of share ownership?Putable preference shares let the holder, in some conditions, to:On liquidation, a preference share's claim is relative to common stock:Most preference shares carry which voting position?Convertible preference shares can be exchanged by holders for:Non-cumulative preference dividends, if unpaid in a year:Preference shares usually rank for dividend payment:A cumulative preference share means unpaid dividend will: