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How many ways can i increase paid up capital?
Can i use retained earnings and change into paid up
capital? If yes, what are the entries in the books?
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Answer / neelakanta
ways to increase share capital
1)By further issue of shares
a) Bank A/C ,.....Dr
call money a/c
b)Call Money A/c ...Dr
TO Share Capital A/c
2)By Bonus issue(using retained earnings,Capital
Profits,free reserves &securities Premium .)
Retained Earnings a/c .....Dr
To Share Capital a/c
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