Effect of Bonus issue on Authorized Capital

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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.


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