Following are the extracts from the Balance Sheet of Chitra Ltd., as on 31 st March 2009.

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Following are the extracts from the Balance Sheet of Chitra Ltd., as on 31^st March 2009.

A resolution was passed declaring the issue of bonus of 25% on equity shares to be provided as to ₹2,00,000 from the Profit & Loss A/c and the balance from Reserve Fund. The bonus issue is to be satisfied by issue of fully-paid equity shares.

Pass journal entries to give effect to the resolution and show how they would affect the Balance Sheet.

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Corporate Accounting

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Authors: Anita Raman, P. Radhika

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Question Posted: Aug 30, 2023 06:25 AM

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Following are the extracts from the Balance Sheet of Chitra Ltd., as on 31 st March 2009.

Question:

Authorised Capital 5,00,000 equity shares of 10 each *50, 00,000. Issued and Subscribed Capital 1, 50,000 equity shares of 10 each fully paid- up *15, 00,000. Reserve Fund Profit & Loss A/c *3,00,000 3,50,000

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Journal Entries Date 31032009 Profit Loss Ac Reserve Fund Ac To Bonus to Shareholders ...View the full answer

Corporate Accounting

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Authorised Capital 5,00,000 equity shares of 10 each 50, 00,000. Issued and Subscribed Capital 1, 50,000 equity shares of 10 each fully paid- up 15, 00,000. Reserve Fund Profit & Loss A/c *3,00,000 3,50,000