Accounting of Bonus Shares Received

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2010 Dear Sir,

I am holding share of R com 500 nos. cost of Rs. 250000.00 Now suppose i receive bonus shares of 5:1 what will be the accouting treatment of bonus shares. Can I Show it as capital introduced and respective increase in the value of investment. Please Explain

Regards and Thanks

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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21 July 2010 The cost of bonus shares are nil. You have to show the no of bonus shares seperately in the investment schedule and the valuse would be nil.