shares transcations

nitin (C.A. Final 2nd group) (58 Points)

30 March 2010  

Hello Friends,

               I  want to clear my point that i have purchased 60 shares of gtl infra ltd. in june 2008. these shares are shown in my balance sheet as on 31.03.2009 as stock of shares not investment (because business head applied) and now in june 2009 i had received 60 bonus shares of gtl infra. So I want to know that these bonus shares should be shown as my closing stock (as originally purchased shares are shown as stock) i.e. no. of shares increased to 120 and cost will be of 60 shares originally purchased and my per share cost will reduced,

           OR

these bonus shares will be shown as investment with nil cost  (means whenever I want to sold these bonus shares the whole sales consideration will be my short term / long term capital gain as per the situation)

 

THANKS IN ADVANCE FOR YOUR VALUABLE SUGGESTIONS.