Multiple Choice Questions on A company cannot issue fully paid up bonus shares to its members out of ........ for Employee State Insurance Corporation (ESIC) Exam Preparation

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Multiple Choice Questions

A company cannot issue fully paid up bonus shares to its members out of ........

Principles of Accounting & Financial Management Bonus and Right issue
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    A company cannot issue fully paid-up bonus shares to its members out of:

     

    Securities Premium
     

    Incorrect Answer

    Capital Redemption Reserve
     

    Incorrect Answer

    Revaluation Reserve
     

    Correct Answer

    All of the above

    Incorrect Answer
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    Explanation:

    Answer:
    (C) Revaluation Reserve

    Fully paid up bonus shares may be issued only out of free reserves, securities premium account or capital redemption reserve account. (Section 63(1) The bonus shares shall not be issued in lieu of dividend.

    The reserves shall be in cash profit in order to use.

    By: NIHARIKA WALIA
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