Bonus Share

How treat shareholder bonus issue of share?...How it will show in balance sheet?
Replies (6)

Bonus isssue increases the existing share capital and reduces the amount used for bonus issue from respective surplus and reserves (Both shown in Liability side)

I am asking from the point of view of shareholder!

From shareholders point of view you have to show Share holding under Capital gain head.

Bonus shares received will increase your no. of units of shares.

For eg. Prior to bonus no. of units held were 100 for Rs.15 market value, you received 50 bonus shares so after receipt of bonus shares your new shareholding will be 150 shares for Rs.15 market value.

In balancesheet you have to specify same in Notes to Accounts head specifying no. of bonus shares received.

In the balance sheet before bonus share allotment 100*15=1500 show assets side after 50 bonus share allotment 150*50=2250 or 150 share = 1500???

bonus shares are free of cost than how can we record it at market price?

I said you have to show Bonus share in total no. of units and specify same in notes to accounts.

Hence total no. of shares will increase for same price of earlier shares

since when u will sell entire 150 shares u will sell it for market price only.

Ok Thank you👍

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