Question

In admission by investment, which method is used when the total agreed capital is more than the total agreed capital?

1) Bonus method
2) Investment method
3) Agreed capital method
4) None of the above

Answer 1

In admission by investment, when the total agreed capital is more than the total agreed capital, the method used is the bonus method.

Step-by-step explanation:

In admission by investment, when the total agreed capital is more than the total agreed capital, the method used is the bonus method. This method involves giving additional shares or ownership to the investors as a bonus, above and beyond their original investment. The bonus method is typically used when the invested capital exceeds the agreed capital.