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Journal entries for bonus shares- Investor perspective

This topic has 5 replies, 3 voices, and was last updated 7 years ago by MikeLittle.

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September 19, 2013 at 8:52 am #140835
gaudiano
Member
- Topics: 3
- Replies: 8
Hello sir,
What accounting entries do we need to pass when say our company ABC has invested in XYZ and XYZ has issued bonus share of say 237,000 shares to our company ABC. How should ABC account for these transactions??
September 20, 2013 at 7:06 pm #140934
MikeLittle
Keymaster
- Topics: 27
- Replies: 23200
It doesn’t! The proportion of shares held remains the same. No money changes hands. The only affect of the bonus issue is that the original shareholding increases
September 23, 2013 at 2:19 pm #141075
gaudiano
Member
- Topics: 3
- Replies: 8
Thank you sir for your response!
Appreciated for your help!!
September 24, 2013 at 3:18 pm #141161
MikeLittle
Keymaster
- Topics: 27
- Replies: 23200
You’re welcome – as always 🙂
June 8, 2017 at 10:06 am #391768
Anonymous
Inactive
- Topics: 0
- Replies: 1
Hi, could you please advise about Journal entries for bonus shares- RECEIVER perspective? Thank you
June 8, 2017 at 10:13 am #391771
MikeLittle
Keymaster
- Topics: 27
- Replies: 23200
See above thread!
In the above thread, we are the investor in XYZ and it’s XYZ that has issued the bonus shares so … we ARE the receiver
OK?
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