Bonus shares

Accountancy

1. Whether Capital reserve can be utilized for issuing bonus shares? 2. If a company has convertible debentures then whether authorized capital to be increased to the extent of equity and bonus shares for debentures holders also?

Nivedha Balaji

CA Final

★ 9K+

22-Mar-21 23:59

624

Answers (4)

1. Capital reserves representing realised gains or collected in cash can be used. 2. Yes, shortfall to be increased.

Sahibdeep Singh

CA Inter

★ 14K+

23-Mar-21 11:26

Sahibdeep Singh

1. Capital reserves representing realised gains or collected in cash can be used. 2. Yes, shortfall to be increased.

Whether such capital reserve can be used for converting partly paid into fully paid shares by way of bonus?

Thread Starter

Nivedha Balaji

CA Final

★ 9K+

23-Mar-21 15:50

Thread Starter

Nivedha Balaji

Whether such capital reserve can be used for converting partly paid into fully paid shares by way of bonus?

Yes, can be used. Restriction is specifically for Securities Premium and Capital Redemption Reserve only.

Sahibdeep Singh

CA Inter

★ 14K+

23-Mar-21 17:11

Sahibdeep Singh

Yes, can be used. Restriction is specifically for Securities Premium and Capital Redemption Reserve only.

Thank you sir

Thread Starter

Nivedha Balaji

CA Final

★ 9K+

23-Mar-21 17:38