Question:

Whats accounting of bonus shares?

by  |  earlier

0 LIKES UnLike

Whats accounting of bonus shares?

 Tags:

   Report

2 ANSWERS


  1. no accounting entry is to be passed by receiver of bonus shares.the company issuing shares will debit amount toreserve and surplus and credit toshare capital.


  2. simple if due to companies regular profit criterion its capital reserve  becomes very high and reached @ point where company gives bonus shares.

    equity capital of company will increase in ratio of bonus shares.e.g- if bonus will given in1:1 ratio equity capital will be doubled.

Question Stats

Latest activity: earlier.
This question has 2 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.