CA Foundation Exam > CA Foundation Questions > A company cannot issue fully paid-up bonus sh...
Start Learning for Free
A company cannot issue fully paid-up bonus shares to its members out of:
- a)Securities Premium
- b)Capital Redemption Reserve
- c)Revaluation Reserve
- d)All of the above
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
A company cannot issue fully paid-up bonus shares to its members out o...
Explanation:
- Securities Premium: Companies can issue fully paid-up bonus shares to its members out of Securities Premium. Securities Premium is the amount received by a company over and above the face value of the shares issued. It can be used to issue bonus shares without affecting the capital structure of the company.
- Capital Redemption Reserve: Capital Redemption Reserve is created when a company buys back its shares. It is used to redeem preference shares or debentures. Bonus shares cannot be issued out of this reserve as it is specifically meant for the redemption of capital instruments.
- Revaluation Reserve: Revaluation Reserve is created when the assets of a company are revalued. This reserve cannot be used to issue bonus shares as it is created for the purpose of accounting for the increase in the value of assets. It cannot be distributed to shareholders as bonus shares.
- All of the above: The correct answer is "All of the above" as bonus shares cannot be issued out of any of these reserves except Securities Premium.
Therefore, a company cannot issue fully paid-up bonus shares to its members out of the Capital Redemption Reserve, Revaluation Reserve, or any other reserves except the Securities Premium.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Top Courses for CA FoundationView all
A company cannot issue fully paid-up bonus shares to its members out of:a)Securities Premiumb)Capital Redemption Reservec)Revaluation Reserved)All of the aboveCorrect answer is option 'C'. Can you explain this answer?
Question Description
A company cannot issue fully paid-up bonus shares to its members out of:a)Securities Premiumb)Capital Redemption Reservec)Revaluation Reserved)All of the aboveCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company cannot issue fully paid-up bonus shares to its members out of:a)Securities Premiumb)Capital Redemption Reservec)Revaluation Reserved)All of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company cannot issue fully paid-up bonus shares to its members out of:a)Securities Premiumb)Capital Redemption Reservec)Revaluation Reserved)All of the aboveCorrect answer is option 'C'. Can you explain this answer?.
A company cannot issue fully paid-up bonus shares to its members out of:a)Securities Premiumb)Capital Redemption Reservec)Revaluation Reserved)All of the aboveCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company cannot issue fully paid-up bonus shares to its members out of:a)Securities Premiumb)Capital Redemption Reservec)Revaluation Reserved)All of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company cannot issue fully paid-up bonus shares to its members out of:a)Securities Premiumb)Capital Redemption Reservec)Revaluation Reserved)All of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Solutions for A company cannot issue fully paid-up bonus shares to its members out of:a)Securities Premiumb)Capital Redemption Reservec)Revaluation Reserved)All of the aboveCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A company cannot issue fully paid-up bonus shares to its members out of:a)Securities Premiumb)Capital Redemption Reservec)Revaluation Reserved)All of the aboveCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A company cannot issue fully paid-up bonus shares to its members out of:a)Securities Premiumb)Capital Redemption Reservec)Revaluation Reserved)All of the aboveCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for A company cannot issue fully paid-up bonus shares to its members out of:a)Securities Premiumb)Capital Redemption Reservec)Revaluation Reserved)All of the aboveCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of A company cannot issue fully paid-up bonus shares to its members out of:a)Securities Premiumb)Capital Redemption Reservec)Revaluation Reserved)All of the aboveCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A company cannot issue fully paid-up bonus shares to its members out of:a)Securities Premiumb)Capital Redemption Reservec)Revaluation Reserved)All of the aboveCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© 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