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Bonus Issue : Authorised Cap

Accountancy

Authorised Capital. = â?¹ 10,00,000 Issued & subs Capital = â?¹ 9,00,000 Now, issued Bonus Share 1:4 i.e. 25% (i.e. â?¹ 2,25,000) Authorised capital will have to be increased by how much? a) 10,00,000 + (25% of 10,00,000) b) 10,00,000 + (25% of 9,00,000) c) or something else..?? Please clarify.

Ishika Goel 282

CA Final

★ 3K+

19-Feb-21 00:15

288

Answers (3)

Best Answer

There is no rule regarding this. You just need to ensure that the paid up capital is within Authorised Capital Limit. So even Authorised capital of 11,25,000 is fine.