The correct answer is C. i, ii or iv.
Bonus shares are shares issued by a company to its existing shareholders without any additional payment. They are issued out of the company’s reserves, such as general reserve, capital reserve, or revaluation reserve. Profit and loss account (credit) is not a reserve and hence cannot be used to issue bonus shares.
General reserve is a reserve created out of the profits of the company. It is a part of the company’s equity and is not available for distribution to shareholders.
Capital reserve is a reserve created out of the proceeds of a capital issue, such as a share issue or a debenture issue. It is also a part of the company’s equity and is not available for distribution to shareholders.
Revaluation reserve is a reserve created out of the revaluation of assets. It is a part of the company’s equity and is not available for distribution to shareholders.
Profit and loss account (credit) is a part of the company’s income statement. It represents the profit of the company after all expenses have been deducted. It is not a reserve and hence cannot be used to issue bonus shares.