CA Foundation Exam > CA Foundation Notes > Principles and Practice of Accounting > PPT: Accounting for Bonus Issue and Right Share
PPT: Accounting for Bonus Issue and Right Share | Principles and Practice of Accounting - CA Foundation PDF Download
| Download, print and study this document offline |
Please wait while the PDF view is loading
Page 1 Rights issue and bonus issue Page 2 Rights issue and bonus issue Legends used in the presentation Act Companies Act, 2013 AOA Articles of Association BOD Board of Directors FMV Fair Market Value IFSC International Financial Services Centre ITA Income Tax Act Page 3 Rights issue and bonus issue Legends used in the presentation Act Companies Act, 2013 AOA Articles of Association BOD Board of Directors FMV Fair Market Value IFSC International Financial Services Centre ITA Income Tax Act Presentation Schema Types of issue Rights issue Provisions under the Act Exceptions Secretarial Compliance Caveats Bonus issue Reserves to be utilised and conditions to be fulfilled Secretarial Compliance Caveats Income Tax implications Judicial precedents Page 4 Rights issue and bonus issue Legends used in the presentation Act Companies Act, 2013 AOA Articles of Association BOD Board of Directors FMV Fair Market Value IFSC International Financial Services Centre ITA Income Tax Act Presentation Schema Types of issue Rights issue Provisions under the Act Exceptions Secretarial Compliance Caveats Bonus issue Reserves to be utilised and conditions to be fulfilled Secretarial Compliance Caveats Income Tax implications Judicial precedents Types of issue Fund raising Equity Public issue Debt Rights issue Private placement Bonus issue ESOP Sweat equity Page 5 Rights issue and bonus issue Legends used in the presentation Act Companies Act, 2013 AOA Articles of Association BOD Board of Directors FMV Fair Market Value IFSC International Financial Services Centre ITA Income Tax Act Presentation Schema Types of issue Rights issue Provisions under the Act Exceptions Secretarial Compliance Caveats Bonus issue Reserves to be utilised and conditions to be fulfilled Secretarial Compliance Caveats Income Tax implications Judicial precedents Types of issue Fund raising Equity Public issue Debt Rights issue Private placement Bonus issue ESOP Sweat equity Rights issue It is the process of raising funds by issuing shares to the existing shareholders of the Company It means that the existing shareholders have the pre-emptive right to subscribe the shares of the Company in relation to an outsider Rights issue can be opted by a Company only in case of further issue of shares and not at the time of first issue The shareholder has the right to either accept or renounce the offer made by the CompanyRead More
|
68 videos|160 docs|83 tests
|
FAQs on PPT: Accounting for Bonus Issue and Right Share - Principles and Practice of Accounting - CA Foundation
| 1. What is a bonus issue in accounting? |  |
Ans. A bonus issue in accounting refers to the distribution of additional shares to existing shareholders of a company at no cost. This is done by capitalizing the company's reserves or profits and converting them into new shares. The purpose of a bonus issue is to reward existing shareholders and increase the liquidity of the company's shares in the market.
| 2. How is a bonus issue accounted for in the financial statements? | |
Ans. A bonus issue is accounted for by adjusting the share capital and reserves of the company. The share capital is increased by the number of bonus shares issued, while the reserves are reduced by the same amount. This results in a transfer of value from the reserves to the share capital. The accounting entry for a bonus issue typically involves debiting the share capital and crediting the reserves.
| 3. What is a right share in accounting? | |
Ans. A right share in accounting refers to the offering of additional shares to existing shareholders of a company at a discounted price. Unlike a bonus issue, shareholders are required to pay for the right shares. The purpose of a right share is to raise additional capital for the company and provide an opportunity for existing shareholders to increase their ownership.
| 4. How are right shares accounted for in the financial statements? | |
Ans. Right shares are accounted for by adjusting the share capital and reserves of the company. The share capital is increased by the amount of capital contributed by shareholders through the purchase of right shares, while the reserves remain unchanged. The accounting entry for a right share typically involves debiting the share capital and crediting the shareholders' equity.
| 5. What are the differences between a bonus issue and a right share? | |
Ans. The main differences between a bonus issue and a right share are:
- Bonus Issue: Bonus shares are issued to existing shareholders at no cost. The purpose is to reward shareholders and increase market liquidity. Shareholders do not need to pay for the bonus shares.
- Right Share: Right shares are offered to existing shareholders at a discounted price. The purpose is to raise additional capital and provide an opportunity for shareholders to increase their ownership. Shareholders need to pay for the right shares.
In terms of accounting, bonus issues involve a transfer of value from reserves to share capital, while right shares involve a transfer of value from shareholders to share capital.
Related Exams
About this Document
|
Oct 25, 2024 Last updated |
Document Description: PPT: Accounting for Bonus Issue and Right Share for CA Foundation 2024 is part of Principles and Practice of Accounting preparation.
The notes and questions for PPT: Accounting for Bonus Issue and Right Share have been prepared according to the CA Foundation exam syllabus. Information about PPT: Accounting for Bonus Issue and Right Share covers topics
like and PPT: Accounting for Bonus Issue and Right Share Example, for CA Foundation 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for PPT: Accounting for Bonus Issue and Right Share.
Introduction of PPT: Accounting for Bonus Issue and Right Share in English is available as part of our Principles and Practice of Accounting
for CA Foundation & PPT: Accounting for Bonus Issue and Right Share in Hindi for Principles and Practice of Accounting course.
Download more important topics related with notes, lectures and mock test series for CA Foundation
Exam by signing up for free. CA Foundation: PPT: Accounting for Bonus Issue and Right Share | Principles and Practice of Accounting - CA Foundation
Description
Full syllabus notes, lecture & questions for PPT: Accounting for Bonus Issue and Right Share | Principles and Practice of Accounting - CA Foundation - CA Foundation | Plus excerises question with solution to help you revise complete syllabus for Principles and Practice of Accounting | Best notes, free PDF download
Information about PPT: Accounting for Bonus Issue and Right Share
In this doc you can find the meaning of PPT: Accounting for Bonus Issue and Right Share defined & explained in the simplest way possible. Besides explaining types of
PPT: Accounting for Bonus Issue and Right Share theory, EduRev gives you an ample number of questions to practice PPT: Accounting for Bonus Issue and Right Share tests, examples and also practice CA Foundation
tests
|
68 videos|160 docs|83 tests
|
Download as PDF
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Important questions
,Sample Paper
,Objective type Questions
,mock tests for examination
,practice quizzes
,PPT: Accounting for Bonus Issue and Right Share | Principles and Practice of Accounting - CA Foundation
,past year papers
,PPT: Accounting for Bonus Issue and Right Share | Principles and Practice of Accounting - CA Foundation
,PPT: Accounting for Bonus Issue and Right Share | Principles and Practice of Accounting - CA Foundation
,Previous Year Questions with Solutions
,Semester Notes
,Exam
,Free
,shortcuts and tricks
,MCQs
,Summary
,study material
,ppt
,Viva Questions
,video lectures
,Extra Questions
;
Additional Information about PPT: Accounting for Bonus Issue and Right Share for CA Foundation Preparation
PPT: Accounting for Bonus Issue and Right Share Free PDF Download
The PPT: Accounting for Bonus Issue and Right Share is an invaluable resource that delves deep into the core of the CA Foundation exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the PPT: Accounting for Bonus Issue and Right Share now and kickstart your journey towards success in the CA Foundation exam.
Importance of PPT: Accounting for Bonus Issue and Right Share
The importance of PPT: Accounting for Bonus Issue and Right Share cannot be overstated, especially for CA Foundation aspirants.
This document holds the key to success in the CA Foundation exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
PPT: Accounting for Bonus Issue and Right Share Notes
PPT: Accounting for Bonus Issue and Right Share Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to PPT: Accounting for Bonus Issue and Right Share.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, PPT: Accounting for Bonus Issue and Right Share Notes on EduRev are your ultimate resource for success.
PPT: Accounting for Bonus Issue and Right Share CA Foundation Questions
The "PPT: Accounting for Bonus Issue and Right Share CA Foundation Questions" guide is a valuable resource for all aspiring students preparing for the
CA Foundation exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study PPT: Accounting for Bonus Issue and Right Share on the App
Students of CA Foundation can study PPT: Accounting for Bonus Issue and Right Share alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the PPT: Accounting for Bonus Issue and Right Share,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of PPT: Accounting for Bonus Issue and Right Share is prepared as per the latest CA Foundation syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup