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What is the double entry of bonus shares received ?

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Question added by Muhammad Zeeshan , Fuctional Consultant , A.F.Ferguson(PwC)
Date Posted: 2014/02/05
Rehan Qureshi
by Rehan Qureshi , Financial Consultant , Self Employeed

As per my knowledge there will be no such entry at time of bonus issue notification received. we only update the memorandum record. 

if any Impairment loss it will be booked at the time of release of Financials

Abdul Wahab
by Abdul Wahab , Business Consultant , Ilyas & Hanif Associates

In case of Bonus shares received the following entry would be recorded:

 

Dr. Investment

Cr. Investment Income

 

As far as the valuation of these bonus shares is concerned, you should take the fair market value closing rate of the date on which you received your bonus shares.

 

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Since no amount is paid and these shares received against previous holding, therefore no double entry is required.

Sajid Hameed - ACA
by Sajid Hameed - ACA , Chief Financial Officer / Acting Chief Operations Officer , EPC (Tamimi Group Company)

No entry at time of such Bonus issue received. only memorandum record will be updated. 

only impairment loss will be booked, if any, at time of issuance of Financial statements. 

kareem ismail
by kareem ismail , Accounts Controller , Accountability State Authority –A.R.E

dividense expense

      cash

Muhammad Zeeshan
by Muhammad Zeeshan , Fuctional Consultant , A.F.Ferguson(PwC)

this entry is totally wrong..beacuse bonus shares are recieved not cash..cash will be recieved only when bonus shares will be sold.and its not our expense also.

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