UrbanPro
true

Take CA Coaching from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

Bonus Issue

C
CA Prashanth Reddy
08/04/2017 0 1

Bonus means Issue of Shares by a Company without any consideration.

Bonus Issue: It is an additional dividend given to the shareholders that can be in cash or in the form of stock. When companies have outstanding performance with surplus profit, they may decide to issue  bonus to the shareholders.

Capitalisation of Profits: Process of converting profits or reserves into paid-up capital. A company may capitalise its profits or reserves which otherwise are available for distribution as dividends among the members by issuing fully paid bonus shares to the members.

 Bonus must be ISSUED AT PAR. Consequent upon bonus issue if the SUBSCRIBED OR PAID UP CAPITAL OF THE COMPANY EXCEEDS THE AUTHORISED CAPITAL, then a resolution shall be passed by the company at its GBM for increasing its authorised capital to that extent.


Return Filed with ROC: A return of bonus issue along with a copy of resolution authorising the issue of bonus shares is also required to be filed with the Registrar of Companies.

  Sec. 63(1) of Companies Act, 2013 –

A company may issue FULLY PAID UP bonus shares to its members, in any manner whatsoever, out of—

  • its free reserves∗;
  • the securities premium account; or
  • the capital redemption reserve account:
0 Dislike
Follow 5

Please Enter a comment

Submit

V

VIJAY | 09/04/2017

Thank you very much Sir

0 0

Other Lessons for You

Memorizing the Balance Sheet
Liability Side Soman Rocked Sajan Under Coconut Palm Soman - Share Capital Rocked - reserves & Surplus Sajan - Secured Loans Under - Un Secured Loans Coconut - Current Liabilities Palm - Provisions ...

Class 11- Chemistry: Concept Of Aromaticity.
Aromaticity: A compound is said to be aromatic if it follows the following conditions: 1. The molecule is cyclic. 2. The molecule is planar. 3. The molecule is fully conjugated. 4. The molecule has...

Computation of Salary income
Basic Salary (+) DA (+) Bonus (+) Taxable portion of allowances (+) Advance Salary (+) Fees (+) Commission (+) Taxable value of perquisities (+) Wages (+) Profit in lieu of salary (+) Taxable...

Basic Accounting Principles
Basic Accounting Principles: Introduction: We have studied economic activities which have been converted into business activities. In business activity a lot of “give & take” exist which...

BBA/MBA-Different marketing concepts
The Production Concept -Consumers will prefer products that are widely available & inexpensive --Which production, low cost, mass distribution The Product concept -Consumers favorites products...
X

Looking for CA Coaching Classes?

The best tutors for CA Coaching Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Take CA Coaching with the Best Tutors

The best Tutors for CA Coaching Classes are on UrbanPro

Book a Free Demo

This website uses cookies

We use cookies to improve user experience. Choose what cookies you allow us to use. You can read more about our Cookie Policy in our Privacy Policy

Accept All
Decline All

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more