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??
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Journal entries for bonus shares- Investor perspective
12y ago#1It 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
Thank you sir for your response!
Appreciated for your help!!
12y ago#3You're welcome - as always :-)
Hi, could you please advise about Journal entries for bonus shares- RECEIVER perspective? Thank you
9y ago#5See 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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