CAN WE USE CAPITAL RESERVE ACCOUNT FOR ISSUE BONUS SHARE?????

Even Capital Reserves can be used for Bonus shares , if received in Cash !

Varun Mulay

CA Final

★ 39K+

11-Feb-23 13:20

Yes, a company can use its capital reserve account to issue bonus shares. Bonus shares are additional shares that a company issues to its existing shareholders, usually in a ratio to their current holdings, without charging them any additional amount.

Sandeep Kumar

CA Inter

★ 2K+

11-Feb-23 13:31

Yes

Shankari C

CA Inter

★ 12K+

11-Feb-23 14:19

Yes, Bonus Shares can be issued by CRR.

Karthick A

CA Final

★ 1K+

11-Feb-23 15:04

Yes, a company can use its capital reserve account to issue bonus shares to its shareholders. The process may require shareholder approval and regulatory approval.

shivaji hari

CA Inter

★ 3K+

11-Feb-23 18:13

Yes, Capital reserves can be used for issue of bonus shares as they are the profit reserves of shareholders and capital reserves should be used for the benefit of existing shareholders.

Samayamanthula Vivek

CA Final

★ 5K+

11-Feb-23 21:11

For issue of bonus shares remember we can use 1) capital redemption reserve 2) securities premium 3) free reserves Capital reserves will be free only if it has realised profits So We can use capital reserves only if it has realised profits

Harshitha Kalidindi

CA Final

★ 51K+

12-Feb-23 07:07

Yes we can use it ,it is just shown separately because it's not earned in the ordinary course of business

mani charan

CA Final

★ 3K+

13-Feb-23 21:24