Can we pay bonus to employees out of Reserves?
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Answer / kajal
We can pay Bonus to Employees only out of Profit & Loss
Account.
| Is This Answer Correct ? | 8 Yes | 1 No |
Answer / kuntal dey
We cannot pay bonus (in terms cash) out of reserve but a co.
can issue bonus shares out of reserve.
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / subhash
Question is not clear reserves are of various types no Bonus can be paid out of Capital Reserves or specific reserves.Bonus paid to employees is mandatory as per the provision of Bonus Act and is a Revenue expenditure to be shewn in Profit and loss A/C and not to be paid out of Reserve to be created for this purpose yet if by any reason some amount of bonus of previous year co.Losses case in the court of Law the same can be appropriated out of General Reserve
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