Bonus shares - capitalisation

dear friends

my query is...

if in B/S both General Reserve and P & L is exist....

and

if in adjustments, Bonus Shares are issued by Capitalization of Profits..... 

which of the following is correct....

is it from General Reserve

OR

is it from P & L

1. General Reserve       A/c    Dr

          To Bonus Shares 

                 OR

2. P & L A/c                  Dr

          To Bonus Shares 

 

(whether to Debit to General Reserve OR to Debit to P & L)

 

 

 

 

 

Replies (3)

Any of these can be utilised ...........there is provision that free reserve or profit...so any can be utilised....

Yes, as said by Saroj, any of them can be utilised for issuing bonus shares.

HELLO,

P/L AND GENERAL RESERVE BOTH ARE THE FREE RESERVE AND YOU HAVE UTILISED ANY OF THEM,

GENERALLY FIRST UTILISED THE P/L THEN IF ANY DEFICIENCY OCCUR THEN U UTILISED THE GENERAL RESERVE..

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details