20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Cashflow – Bonus issue

This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
August 10, 2016 at 9:02 pm #332590
Candy
Member
- Topics: 135
- Replies: 79
Hi Mike,
IF there is a bonus issue in the year – because bonus issue is ‘free shares’ – and therefore the entity will not receive any cash consideration.
How do we account for this?
Many thanks
August 11, 2016 at 7:36 am #332651
MikeLittle
Keymaster
- Topics: 27
- Replies: 23323
Dr Share Premium account (or general reserve account or retained earnings account)
Cr Share Capital account
with the nominal value of the bonus shares issued
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.