Why share premium not realised i cash can't be used for bonus issue?
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Share premium
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Definition of 'Share Premium Account'Usually found on the balance sheet, this is the account to which the amount of money paid (or promised to be paid) by a shareholder for a share is credited to, only if the shareholder paid more than the cost of the share. |
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Investopedia explains 'Share Premium Account'The share premium account may be used to issue bonus shares, write-off equity related expenses like underwriting costs, etc. |
for example 100 equity shares @ r.s 10 , people applied full with premium 2
100 x 2 = 200 is the share premium amount which you can utilize for issue of Bonus shares or else for partly shares to make fully paid shares...........
for more details
https://www.investopedia.com/terms/s/sharepremiumaccount.asp
hope it helped :D take care
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