Dear CCI Members
How accounting entry for bonus shares is to be made in tally.
C.A. Sandeep Wawhal (CA, PGDFM, BCom) (1831 Points)
15 December 2012Dear CCI Members
How accounting entry for bonus shares is to be made in tally.
Eshan Upasani
(Associate Merger and Acquisition)
(92 Points)
Replied 15 December 2012
SINCE THERE IS NO CASH CONSIDERTION INVOLVED IN ISSU OF BONUS SHARES AND SUCH SHARES ARE A MERE CAPITALISATION OF RESERVES & PROFIT OF THE COMPANY, HENCE THE FOLLOWING ENTRY SHOULD BE PASSED:----- <br>
RESERVES A/C..........DR
TO SHARE CAPITAL A/C
IN THE ABOVE RESERVES INCLUDES P/L A/C, GEN. RES , ETC WHICHEVER THE CO IS USING TO MAKE BONUS ISSUE.MOREOVER IT IS IS SHORTCUT ENTRY FOR SUCH ISSUE.
Eshan Upasani
(Associate Merger and Acquisition)
(92 Points)
Replied 17 December 2012
IN CASE OF INVESTOR THERE ARE NO J/V ENTRY TO ME MADE....THEY SHALL ONLYINCREASE THEIR INVESTMENT AMOUNT BY THE AMOUNT OF BONUS ISSUE GIVING A NOTE OF THE BONUS ISSUE
C.A. Sandeep Wawhal
(CA, PGDFM, BCom)
(1831 Points)
Replied 19 December 2012
HOW CAN AMOUNT WILL INCREASE ? STOCK WILL BE INCREASE !
Eshan Upasani
(Associate Merger and Acquisition)
(92 Points)
Replied 19 December 2012
YES YOU ARE CORRECT ONLY THE NO. OF SHARES INVESTED WILL INCREASE
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