Accounting for quantity of bonus shares received

Siddharth Zaveri (Mahavir Hydraulics Pvt Ltd)   (48 Points)

18 January 2017  

Dear Members,

How do I account for the quantity of bonus shares received by me?

I understand that no entry has to be passed on receipt of bonus shares. But say if I hold 500 shares of a certain company who has awarded bonus shares at 1:1, how do I account for the quantity of the 500 bonus shares received?

The only thing I can think of is go to each entry retrospectively and double the quantity retaining the investment cost but that is too cumbersome and volumnous. Is there any other way?

Thank you.