Abu Rayan SAOG has issued 2,000,000, OMR 1 equity share

Accounting Nov 16, 2020

Abu Rayan SAOG has issued 2,000,000, OMR 1 equity share. The company decided to make a bonus issue in the ratio of 2 for every 8 shares held. How much bonus shares will have to be issued by the company?

4,000,000 shares

1,000,000 shares

2,000,000 shares

500,000 shares

Expert Solution

Solution :

Bonus shares will have to be issued by the company

= 2,000,000 x 2 / 8

= 500,000 shares

d. 500,000 shares

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