anonymous (student) (750 Points)

23 July 2020  

Hey, If A had acquired 80% shares in B on 01/04/2016 where the General Reserve balance was 50,000 and P/L balance was 60,000

B issued bonus for 1 share for every 5 held on 01/10/2019 at par from General Reserve. No entries was made in both the books.

At the year end on 31/03/2020, Share capital before bonus issue was 5,00,000/-, General Reserve is 80,000/- and P/L is 1.00.000/-

Can some one help me how this bonus issue has to be treated with and also bifurcation of capital and revenue profits