Bonus Share
Shakir Ravjani (Student) (192 Points)
20 June 2018
How treat shareholder bonus issue of share?...How it will show in balance sheet?
Shakir Ravjani (Student) (192 Points)
20 June 2018
Sarath Rajendran
(Nil)
(2791 Points)
Replied 20 June 2018
Bonus isssue increases the existing share capital and reduces the amount used for bonus issue from respective surplus and reserves (Both shown in Liability side)
Shakir Ravjani
(Student)
(192 Points)
Replied 20 June 2018
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 20 June 2018
From shareholders point of view you have to show Share holding under Capital gain head.
Bonus shares received will increase your no. of units of shares.
For eg. Prior to bonus no. of units held were 100 for Rs.15 market value, you received 50 bonus shares so after receipt of bonus shares your new shareholding will be 150 shares for Rs.15 market value.
In balancesheet you have to specify same in Notes to Accounts head specifying no. of bonus shares received.
Shakir Ravjani
(Student)
(192 Points)
Replied 20 June 2018
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 20 June 2018
I said you have to show Bonus share in total no. of units and specify same in notes to accounts.
Hence total no. of shares will increase for same price of earlier shares
since when u will sell entire 150 shares u will sell it for market price only.
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