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Accounting for Investment by Individual

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This query is : Resolved

NITHYA.P (Querist)

08 August 2008 When a Company Issues Bonus shares to an Individual(Status),what accounting entry should be passed in the books of the Individual.

CA Naveen Kumar Agrawal

CA Naveen Kumar Agrawal (Expert)

09 August 2008 No entry is Passed in the books, just a mamoranda entry is made for number of shares received as bonus shares. In Debit side of the investment a/c in "No. of Shares" column No. of shares are recorded without recording any value in "Cost" column. e.g. if 100 shares recd as bonus shares. it will be shown as follows:

.............................Investment a/c(extracted)

Dr.
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particular...................No.of sh..............Cost
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Bonus Shares
Received.......................100.....................Nil

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