Which of the following statement is true:

Question

TuteeHUB · Accepted Answer

There is change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of post-acquisition profit.

TuteeHUB · Answer

There is no change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of pre-acquisition profit.

TuteeHUB · Answer

There is change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of pre-acquisition profit.

TuteeHUB · Answer

There is no connection between the issue of bonus shares and the calculation of capital reserve.

1.	Which of the following statement is true:
A.	There is no change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of pre-acquisition profit.
B.	There is change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of post-acquisition profit.
C.	There is change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of pre-acquisition profit.
D.	There is no connection between the issue of bonus shares and the calculation of capital reserve.
Answer» B. There is change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of post-acquisition profit.

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