dear friends
my query is...
if in B/S both General Reserve and P & L is exist....
and
if in adjustments, Bonus Shares are issued by Capitalization of Profits.....
which of the following is correct....
is it from General Reserve
OR
is it from P & L
1. General Reserve A/c Dr
To Bonus Shares
OR
2. P & L A/c Dr
To Bonus Shares
(whether to Debit to General Reserve OR to Debit to P & L)