No issue of bonus shares shall be made by a company out of:

CS Executive · Corporate and Management Accounting · PYQS · December 2020
No issue of bonus shares shall be made by a company out of:
(A) Its free reserves
(B) The securities premium account
(C) Capitalizing reserves created by revaluation of assets
(D) The capital redemption reserve account

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Corporate Accounting

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