JOURNAL ENTRIES for issue of bonus shares

                                                     Books of Anuj ltd.

(I)              General reserve A/c      Dr.    40000(10000*4)

                            To Bonus to shareholders A/c                  40000

               ( Being  bonus declared for making it fully paid up)

                  Share Final Call A/c          Dr.   40000

                           To share capital a/c                             40000

                ( Being final call made due)

                  Bonus to shareholders A/c      Dr.   40000

                          To Share final call A/c.                             40000

                (Being shares made fully paid up to Rs 10)

(II)   General reserve A/c      Dr.    192000(20000shrs/5 * 4*Rs12)

        To Bonus to shareholders A/c              192000

( Being 16000 bonus shares to be issued @ Rs12)

Bonus to shareholders A/c     Dr.       192000

    To share capital A/c                                    160000(16000*10)

    To securities premium A/c                             32000(16000*2)

( Being 16000 bonus shares issued at a premium

Of Rs2 and having face value as Rs10.)

Thanks Faiz for your reply......