LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Issue of bonus shares out of capital profit

V Devaraj Rao (Asst. Manager - Finance) (84 Points)

28 May 2018

Can anybody advice the situations where a Company can issue bonus shares out of capital profits ?

Reply
Follow
Share

5 Replies

manish tejwani (1608) (61 Points)
Replied 28 May 2018

not allowed only security premium and balance of p&l is permitted

Aditi (Student) (389 Points)
Replied 28 May 2018

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 .

Deepen (Company Secretary) (144 Points)
Replied 28 May 2018

Even securities premium account is treated as capital in nature. Correct me if I am wrong.

Aditi (Student) (389 Points)
Replied 28 May 2018

yes, and it is actual profit realised so it is also used for bonus issue

srikumar (audit staff) (1203 Points)
Replied 02 September 2018

accumulated profit take consideration for issue if bonus shares

Recent Topics

More recent discussions | Post

Related Threads

Popular Discussion

Start a New Discussion

Trending Online Classes

"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"

CA Vishal Zawar

Enroll Now

01 May 2024
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)

CA Arun Chhajer

Enroll Now

27 April 2024
5th Live Batch for Basic and Advanced MS Excel

CA Vishal Zawar

Enroll Now

20 May 2024

view all classess

Subscribe to the latest topics :

Search Forum:

Forum Home

Popular Threads