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Accounting for Investment by Individual

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08 August 2008 When a Company Issues Bonus shares to an Individual(Status),what accounting entry should be passed in the books of the Individual.

09 August 2008 No entry is Passed in the books, just a mamoranda entry is made for number of shares received as bonus shares. In Debit side of the investment a/c in "No. of Shares" column No. of shares are recorded without recording any value in "Cost" column. e.g. if 100 shares recd as bonus shares. it will be shown as follows:

.............................Investment a/c(extracted)

Dr.
---------------------------------------------------------------------
particular...................No.of sh..............Cost
---------------------------------------------------------------------
Bonus Shares
Received.......................100.....................Nil



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