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