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Hi There,
what would the double entry be for the following:Company A (the shareholder) holds 100 ordinary class A shares in Company B.
Company B issued 900 bonus ordinary class A shares for no consideration to Company A.Company A now has 1,000 ordinary class A shares.
In Company A, would you DR the investment 900 and CR capital account 900? or would you CR the Shareholder Loan or retained earnings?
I cannot find anything on how to record the bonus issued shares from the shareholders view.
any help would be appreciated.
ThanksAssume that Company paid 1,000 for 100 shares – so they have an investment with a CA of 1,000.
If they pay nothing for the BI then there will be no further double entry
A bit surprised that you asked as I’ve not seen this in any SBR learning materials
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