Accounting for Investment by Individual

This query is : Resolved

NITHYA.P (Querist)
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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.

CA Naveen Kumar Agrawal

CA Naveen Kumar Agrawal (Expert)
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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.
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particular...................No.of sh..............Cost
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Bonus Shares
Received.......................100.....................Nil