Effect of Bonus issue on Authorized Capital

Vedant Khanna (374 Points)

12 December 2018  
Authorized Capital
1,00,000 equity shares of Rs.10 each

Issued and Paid up capital
90,000 equity shares of Rs.10 each

Bonus issue is one share for every 4 held (1:4)

therefore issued and paid up capital will increase by 25%.

So do i need to increase my authorised capital by 25% or just the excess required of 1,25,000?