ENTRY OF BONUS

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DARSHAN

DARSHAN (Querist)
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14 March 2009 IF ASSESSEE HAS RECEIVED BONUS SHARE FROM COMPANY WHICH A/C HE SHOULD CREDIT.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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14 March 2009 no entry is passed for receiving bonus share as it is not a transaction.
since consideration is nil.
for example if you got a radio free with a fan for your office, it does not constitute income, but it is a assets.

You should not pass any entry but debit the quantity column of bonus share in the investment in shares account, and at the time of selling any share use FIFO method or weight average to compute profit then,

Hope u understand regards.........!

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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14 March 2009 i agree with Mr. Manmohan

C A GROUP COACHING

C A GROUP COACHING (Expert)
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14 March 2009 NO FINANCIAL TRANSACTION INVOLVED, BUT JUST ADD TO THE NUMBER OF SHARES WHICH YOU HAVE WHICH WILL EFFECTIVELY REDUCE YOUR PER SHARE COST

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