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Bonus Share

Shakir Ravjani (Student) (192 Points)

20 June 2018

How treat shareholder bonus issue of share?...How it will show in balance sheet?

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6 Replies

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)

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Shakir Ravjani (Student) (192 Points)
Replied 20 June 2018

I am asking from the point of view of shareholder!

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

In the balance sheet before bonus share allotment 100*15=1500 show assets side after 50 bonus share allotment 150*50=2250 or 150 share = 1500???

bonus shares are free of cost than how can we record it at market price?