What will be the order of the reserves from which bonus will be issued:
1)Capital reserve (cash value)
2)General reserve
3)Capital redemption reserve
4)securities premium(cash value)
5)p/l credit calance
Case 1- on giving bonus by converting partly paid shares into full paid shares
Order of reserves would be:
1) capital reserve(realised in cash)
2)general reserve
3)profit& loss account
Case-2 on issue of fully paid bonus shares
Order of reserves-
1) CRR
2) securities premium(realized in cash)
3)capital reserve (realized in cash)
4)general reserve
5)profit &loss account
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CAclubindia
