14 March 2009
no entry is passed for receiving bonus share as it is not a transaction. since consideration is nil. for example if you got a radio free with a fan for your office, it does not constitute income, but it is a assets.
You should not pass any entry but debit the quantity column of bonus share in the investment in shares account, and at the time of selling any share use FIFO method or weight average to compute profit then,
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