Basic query in accounting
This query is : Resolved
pavankumar
(Querist)
01 November 2013
Method of Redemption
The ‘Gap’ created in the company’s capital by the redemption of redeemable preference shares must be filled-in by:
a)the proceeds of a fresh issue of shares
b)the capitalization of undistributed profits or
c)a combination of (a) and (b)
In the above context:
Q1)Whether Bonus shares will be issued on Above fresh issue of shares.?
I will be very much thankful to you.
The ‘Gap’ created in the company’s capital by the redemption of redeemable preference shares must be filled-in by:
a)the proceeds of a fresh issue of shares
b)the capitalization of undistributed profits or
c)a combination of (a) and (b)
In the above context:
Q1)Whether Bonus shares will be issued on Above fresh issue of shares.?
I will be very much thankful to you.
CA Pallav Singhania
(Expert)
01 November 2013
When prep. shares are redeemed out of profit then Capital redemption reserve {CRR} is to created,
CRR used for issue of Bonus shares...
CRR used for issue of Bonus shares...
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pavankumar
(Querist)
01 November 2013
Whether Bonus shares will be issued on shares which are specifically issued for the purpose of Redemption?If No, why?
CA Pallav Singhania
(Expert)
01 November 2013
If AOA permits so...
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