AUTHORIZED CAPITAL:
100000 equity shares of 10 each
ISSUED AND SUBSCRIBED CAPITAL
90000 equity shares of 10 each paid up....
company decided to issue bonus shares in 1:4 ratio..
what will be the increased AUTHORIZED share capital?
8 Replies
Rakshit Krishnamurthy
(46 Points)
Replied 25 April 2019
sir how 350000? is it not 122500? I.e 90000shares *1/4=22500shares
22500+100000= so authorized capital should be increased by 22500 shares right?
22500+100000= so authorized capital should be increased by 22500 shares right?
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 25 April 2019
ratio is 1:4 not 4:1.so if 1:4 ratio then for 1 share 4 shares need to be issued. so for 90000shares 360000 shares need to be issued. 10000 authorized share capital already avay.so additional 350000 authorized share capital required
Rakshit Krishnamurthy
(46 Points)
Replied 25 April 2019
sir if ratio was 4:1 then it should be increased by 12500? and not 22500?
prasad Nilugal
( GST Practitioner & Accounts )
(14803 Points)
Replied 25 April 2019
If ratio is 1:4 (as mentioned in query ) then for every single share holder , they will get additional 4 bonus shares . Is it correct?.
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