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Bonus Issue : Authorised Cap

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

Ishika Goel 282

CA Inter

2K+

19-Feb-21 00:15

20

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.


Suraj Lakhotia

Suraj Lakhotia

Admin

19-Feb-21 08:37

See the image

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Aman Mahajan

Aman Mahajan

CA Inter

18K+

21-Feb-21 11:32

See the image

The logic given in material is not correct


Suraj Lakhotia

Suraj Lakhotia

Admin

21-Feb-21 11:41