CA Foundation Exam > CA Foundation Questions > Bonus issue can be made ona)Partly paid-up sh...
Start Learning for Free
Bonus issue can be made on
- a)Partly paid-up shares
- b)Fully paid-up shares.
- c)Either (A) or (B)
- d)Both (A) and (B)
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up share...
Explanation:
- What is a bonus issue: A bonus issue is when a company decides to issue additional shares to existing shareholders for free, in proportion to their current holdings.
- Types of shares for bonus issue: Bonus issue can be made on either partly paid-up shares or fully paid-up shares.
- Partly paid-up shares: These are shares on which only a part of the face value has been paid by the shareholders. The company can issue bonus shares on these shares to reward the shareholders and bring their ownership to par.
- Fully paid-up shares: These are shares on which the full face value has been paid by the shareholders. Bonus issue on fully paid-up shares is a way for the company to reward the shareholders without requiring any additional payment.
- Option C and D: Option C states that bonus issue can be made on either partly paid-up shares or fully paid-up shares, while option D states that bonus issue can be made on both partly paid-up shares and fully paid-up shares. Since both options C and D are correct, the answer is option B.
Most Upvoted Answer
Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up share...
Explanation:
Fully paid-up shares:
- Fully paid-up shares are those shares for which the entire amount has been paid by the shareholders to the company.
- Bonus issue cannot be made on fully paid-up shares because the company has already received the full value of the shares from the shareholders.
Partly paid-up shares:
- Partly paid-up shares are those shares for which only a portion of the total amount has been paid by the shareholders to the company.
- Bonus issue can be made on partly paid-up shares because the company has not yet received the full value of the shares from the shareholders.
- By issuing bonus shares, the company can capitalize the reserves and surplus to the extent necessary to make the partly paid-up shares fully paid-up.
Conclusion:
- Bonus issue can be made on partly paid-up shares but not on fully paid-up shares. This is because bonus issue helps in capitalizing reserves and surplus, which can be utilized to make the partly paid-up shares fully paid-up.
Fully paid-up shares:
- Fully paid-up shares are those shares for which the entire amount has been paid by the shareholders to the company.
- Bonus issue cannot be made on fully paid-up shares because the company has already received the full value of the shares from the shareholders.
Partly paid-up shares:
- Partly paid-up shares are those shares for which only a portion of the total amount has been paid by the shareholders to the company.
- Bonus issue can be made on partly paid-up shares because the company has not yet received the full value of the shares from the shareholders.
- By issuing bonus shares, the company can capitalize the reserves and surplus to the extent necessary to make the partly paid-up shares fully paid-up.
Conclusion:
- Bonus issue can be made on partly paid-up shares but not on fully paid-up shares. This is because bonus issue helps in capitalizing reserves and surplus, which can be utilized to make the partly paid-up shares fully paid-up.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up shares.c)Either (A) or (B)d)Both (A) and (B)Correct answer is option 'B'. Can you explain this answer?
Question Description
Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up shares.c)Either (A) or (B)d)Both (A) and (B)Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up shares.c)Either (A) or (B)d)Both (A) and (B)Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up shares.c)Either (A) or (B)d)Both (A) and (B)Correct answer is option 'B'. Can you explain this answer?.
Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up shares.c)Either (A) or (B)d)Both (A) and (B)Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up shares.c)Either (A) or (B)d)Both (A) and (B)Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up shares.c)Either (A) or (B)d)Both (A) and (B)Correct answer is option 'B'. Can you explain this answer?.
Solutions for Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up shares.c)Either (A) or (B)d)Both (A) and (B)Correct answer is option 'B'. 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 Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up shares.c)Either (A) or (B)d)Both (A) and (B)Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up shares.c)Either (A) or (B)d)Both (A) and (B)Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up shares.c)Either (A) or (B)d)Both (A) and (B)Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up shares.c)Either (A) or (B)d)Both (A) and (B)Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Bonus issue can be made ona)Partly paid-up sharesb)Fully paid-up shares.c)Either (A) or (B)d)Both (A) and (B)Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
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.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup