Question

As of March 31, 2026, Z Ltd. has a Paid-up Share Capital of ₹10 Lakh (1 Lakh shares of ₹10 each) and Free Reserves of ₹8 Lakh. The company decides to issue Bonus Shares in the ratio of 1:2. What will be the balance in the Free Reserves account immediately after the bonus issue?

A ₹3 Lakh
B ₹5 Lakh
C ₹4 Lakh
D ₹2 Lakh
E ₹8 Lakh
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