Entry of bonus shares

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