CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

The balance of Capital Redemption Reserve Account is available for ___________.

A
redemption of redeemable preference shares
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
redemption of redeemable debentures
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
re-organisation of share capital
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
issue of bonus shares
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution

The correct option is D issue of bonus shares
Section 63 of the companies Act, 2013 deals with the issue of bonus shares. According to Sub-section (1) of this section, a company may issue fully paid-up bonus shares to its members, in any manner whatsoever, out of -
1. its free reserves;
2. the securities premium account; or
3. the capital redemption reserve account.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Accounting Treatment-II
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon