Bonus or right issue

Accountancy

If in the qn has given eg:bonus shares was allotted in the ratio 1:1..my doubt was the 1st one is held or issue??

Prasanna Ram

CA Inter

★ 0

22-Feb-23 19:34

530

Answers (3)

bonus shares were allotted in the ratio 1:1, it means that for every one share held by an existing shareholder, one additional share was issued to that shareholder as a bonus. So, in this case, the first share is already held by the existing shareholder, and the bonus share is issued to them as an additional right or benefit. Therefore, the bonus share is issued to the existing shareholder as a reward for holding the shares of the company and is not considered a new issue of shares.

Sandeep Kumar

CA Inter

★ 2K+

22-Feb-23 19:46

Tq much

Thread Starter

Prasanna Ram

CA Inter

★ 0

22-Feb-23 19:47

1:1 - 1 for 1 held (existing) 1:2 - 1 for 2 held (existing)

CA Suraj Lakhotia

Admin

23-Feb-23 17:30