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Accountancy

In buy back videos sir told crr is created to compensate the liability holders but when crr is used for issuing fully paid up bonus shares then the amount gets converted into share capital then what is benifit for liability holders

Enuguru Sai Nithin

CA Final

★ 78K+

26-Oct-20 23:40

345

Answers (1)

If the amount is kept in free reserves, company may pay dividend. If it is capital, it is difficult to return it back to the owners.

CA Suraj Lakhotia

Admin

27-Oct-20 17:22

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