Maharashtra State BoardHSC Commerce 12th Board Exam
Advertisement Remove all ads

Explain the following term/concept:Capitalisation of Reserves - Secretarial Practice

Advertisement Remove all ads
Advertisement Remove all ads
Short Note

Explain the following term/concept:
Capitalisation of Reserves

Advertisement Remove all ads

Solution

(1) The process of issuing the bonus shares out of the company's profits or reserves is known as "Capitalisation of Profits or Reserves.
(2) It is a reward to shareholders, distributed in proportion to the number of shares each owns. The process has no impact on a corporation book value.

Concept: Precautions to Be Taken by the Secretary While Corresponding with Members
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Balbharati Secretarial Practice 12th Standard HSC Maharashtra State Board
Chapter 6 Correspondence with Members
Exercises | Q 2. 1. | Page 103
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×