Effect of Bonus issue on Authorized Capital

Authorized Capital
1,00,000 equity shares of Rs.10 each

Issued and Paid up capital
90,000 equity shares of Rs.10 each

Bonus issue is one share for every 4 held (1:4)

therefore issued and paid up capital will increase by 25%.

So do i need to increase my authorised capital by 25% or just the excess required of 1,25,000?
Replies (1)
You need to increase authorised capital by just excess required of 125000.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register