Dear Members,
What is the accounting treatment for Premium received on Issue of Convertible Debentures?
will it go to securities premium? If yes, can it be used for issuing Bonus shares?
Plz clarify
Swati Sharma (TRAINEE) (328 Points)
06 April 2018Dear Members,
What is the accounting treatment for Premium received on Issue of Convertible Debentures?
will it go to securities premium? If yes, can it be used for issuing Bonus shares?
Plz clarify
satish
(teaching)
(2046 Points)
Replied 08 April 2018
YES,
premium on issue of shares are transferred to securities premium, weather it is issued under the mode of cash or other mode of cash.
but securities premium which is generated in the form of cash is eligible for issue of bonus shares as per SEBI guide lines.
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