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Accounting for bonus issue (authorized capital)

Accountancy

In illustration 3 (pg.no 6.10) The authorized capital was increased with full of bonus share ,but you taught that add only number of equity share exceeds authorized

Subash Chandrabose

CA Final

★ 32K+

03-Mar-21 12:20

277

Answers (1)

In this case, the existing Auth cap is assumed to be the same as issued & subscribed capital before bonus in some cases auth capital is higher than issued & subscribed capital then increase in auth capital will only be number of shares higher than auth capital