Bonus shares received
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 June 2016
Dear All,
I'm maintaining my share trading account as a business account. So I show my share purchase and sale entries as stock items. Now I've received bonus shares from a company. So I passed the entry by going to "Stock Journal" from "Inventory Vouchers" and entered name of the company, quantity of bonus shares received and rate as zero on the destination side and finished the transaction. But when I checked the "Stock Item" in "Inventory Book", it also showed value of the bonus shares received. I want to know how does it show value if the rate of the item is entered as zero. Please guide me how to pass the proper entry to record my transaction. Thanks in advance..
I'm maintaining my share trading account as a business account. So I show my share purchase and sale entries as stock items. Now I've received bonus shares from a company. So I passed the entry by going to "Stock Journal" from "Inventory Vouchers" and entered name of the company, quantity of bonus shares received and rate as zero on the destination side and finished the transaction. But when I checked the "Stock Item" in "Inventory Book", it also showed value of the bonus shares received. I want to know how does it show value if the rate of the item is entered as zero. Please guide me how to pass the proper entry to record my transaction. Thanks in advance..
Amol S Joglekar
(Expert)
17 June 2016
Assuming 1:1 bonus, on the record date, stock entry is passed. say 100 shares, now on record date, it becomes 200. The stock entry is passed accordingly....It will spread over the original cost, if any
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