SOLUTION
Issue of bonus shares will not change the Debt- equity ratio because reserves are converted into share capital.
The Debt Equity ratio of a company is 1: 2. State whether ‘Issue of bonus shares’ will increase, decrease or not change the Debt Equity Ratio. (C.B.S.E. 2019, M.P.; 2020 Mumbai. Chennai)
- Post category:Accountancy
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