Bonus Share

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)

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.

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.