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BONUS SHARES

25 April 2019

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?

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8 Replies

AAS MOHAMMAD (student) (86 Points)
Replied 25 April 2019

450000 shares

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Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 25 April 2019

350000 shares

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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?

Giridhar S Karandikar (Team Lead) (7543 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

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