Accountancy, asked by sunilsethi1573, 1 month ago

capital redemption reserve account and securities premium reserve account can be utilised only for issuinh fully paid bonus share and not for making partly paid share __​

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Answered by 484858686rl5667
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Answer:

The balance in the CRR is allowed to be used exclusively for issuing fully-paid bonus shares to the members of the company. The CRR is a statutory reserve. Hence, it should not be given the same treatment as a free reserve. A free reserve is one which is eligible for distribution as dividend.

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