Can anybody advice the situations where a Company can issue bonus shares out of capital profits ?
Menu
Issue of bonus shares out of capital profit
Replies (5)
not allowed only security premium and balance of p&l is permitted
bonus issue can be made from genuine profita only which are actually earned. capital profit arises on account of profit on sale of asset and hence it can be utilised . but profit on revaluation of asset which is not actual cant be utilised .
Even securities premium account is treated as capital in nature. Correct me if I am wrong.
yes, and it is actual profit realised so it is also used for bonus issue
accumulated profit take consideration for issue if bonus shares
Recent Topic
- Real operational bottlenecks after firms use Tally
- Purchase return under gst
- Long Term Capital Loss - cannot be carried forward
- Cross-utilization of ITC between Trading and Resta
- Form 121 eligibility for non deduction of TDS for
- Gold/silver etf. STCG. how to decalre in ITR at s
- ITR-2 : cash income that does not fall under any h
- Debit note issued to supplier
- Ca pratik takkar imp list
- TDS EXECESS AMOUNT ADJUSTMENT
Related Topics
CAclubindia
