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What is the impact of the financial statement after bonus issue?
Wiki User
∙ 14y ago
Impact on the companys balance sheet is:
Retained earning n the accumulated profits of the company decreases & the share capital with the same amount increases.
The entry passed is
Retaned earning/ Accumulated profits a/c Dr.
To Equity share capital
It is merely transferring the amount from accu profits to the equity cap a/c n not increase in any amount or cash with the company.
Wiki User
∙ 14y ago
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Define or describe the phrase 'red Flags explain the impact of red flags identified by auditors on each major phase of an audit?
Red flags are associated with a fraudulent item referenced on a financial statement. It could represent an accounting issue, unusual increase in financial growth or rapid financial decline.
Why bonus issue is not included in the cash flow statement?
As no cash is received, like when the first time a company goes IPO or issues rights shares.
Can you use revaluation reserve to issue share capital?
yes, for a bonus issue
Can a company issue free shares?
Yes it is possible and is called a bonus issue, the company must still fund the issue of the shares out of distributable reserves. Check for treatment on a bonus issue to ensure you use the correct treatment!
How is cost accounting impact in financial accounting?
Cost accounting mainly becomes a decision making issue. However, it does impact financial accounting with regards to the inventory account on the balance sheet statement and cost of goods sold on the income statement. It is used in manufacturing firms in order to cost there inventory which is not as easy as a retail firm that really justs costs products at the purchase price. While your countries accounting board regulates the method (generally absorption costing) there is significant debate in accounting theory as to which method (variable or absorption) is a better costing method.
What is the effect of a bonus issue on the share capital and share premium account?
Bonus shares increases the share capital while reduces the share premium account because amount of share premium is used to issue bonus shares.
What is the job of external auditor?
Job of external auditor is to examine the books of accounts of company and issue a clearance letter regarding the true and fair nature of financial statement.
What are bonus shares?
Concept: When a company has accumulated large reserves which cannot be disrtibuted as dividents in cash either due to legal restrictions or accounting principle f prudence, it converts this surplus capital & divides the capital among the existing shareholders according to the share capital held by issuing fully paid bonus shares. NOTEWORTHY POINTS: 1. The share of bonus shares soes not constitute a source of income to the company or the financial position of the company remains the same. 2. Issue of bonus shares is not for sistribution of profits among the shareholders and hence not for income tax purpose. 3. Are not a gift. 4. The issue of bonus share does not improve the well being or financial position of the shareholders even though no cash is paid by them to acwire these shares...
What is the disadvantages of bonus issue?
papio ki jai boli
What are bonues?
Concept: When a company has accumulated large reserves which cannot be disrtibuted as dividents in cash either due to legal restrictions or accounting principle f prudence, it converts this surplus capital & divides the capital among the existing shareholders according to the share capital held by issuing fully paid bonus shares. NOTEWORTHY POINTS: 1. The share of bonus shares soes not constitute a source of income to the company or the financial position of the company remains the same. 2. Issue of bonus shares is not for sistribution of profits among the shareholders and hence not for income tax purpose. 3. Are not a gift. 4. The issue of bonus share does not improve the well being or financial position of the shareholders even though no cash is paid by them to acwire these shares...
The Running Dream?
Explain the major social issue that the protagonist is facing in your novel. What impact does this issue have on the protagonist's actions and emotions? How does the social issue impact the protagonist's relationships with others?
What will increase equity?
Equity share capital can be increased by a bonus issue, a rights issue, Follow on public offering.. Regards Sumit..
