24 June 2011
Hi, the market price of the share increases in anticipation of Right/bonus. so when u buy shares cum right, u pay higher price. for the total price paid (principal + right portion, u pass the following entry: Investment A/c dr. To bank a/c Here, cost of right also get debited to investment A/c. now, if u sell the right without subscribing the shares, it should definitely be credited to investment a/c (as the cost already got debited to invt. a/c) Regards, CA Shakuntala Chhangani
CAclubindia
