Entry of bonus shares

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Dear CCI Members

How accounting entry for bonus shares is to be made in tally.

Replies (4)

SINCE THERE IS NO CASH CONSIDERTION INVOLVED IN ISSU OF BONUS SHARES AND SUCH SHARES ARE A MERE CAPITALISATION OF RESERVES & PROFIT OF THE COMPANY, HENCE THE FOLLOWING ENTRY SHOULD BE PASSED:----- <br>

RESERVES A/C..........DR

TO SHARE CAPITAL A/C

 IN THE ABOVE RESERVES INCLUDES P/L A/C, GEN. RES , ETC WHICHEVER THE CO IS USING TO MAKE BONUS ISSUE.MOREOVER IT IS IS SHORTCUT ENTRY FOR SUCH ISSUE.

IN CASE OF INVESTOR THERE ARE NO J/V ENTRY TO ME MADE....THEY SHALL ONLYINCREASE THEIR INVESTMENT AMOUNT BY THE AMOUNT OF BONUS ISSUE GIVING A NOTE OF THE BONUS ISSUE

HOW CAN AMOUNT WILL INCREASE ? STOCK WILL BE INCREASE !

YES YOU ARE CORRECT ONLY THE NO. OF SHARES INVESTED WILL INCREASE 


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