cash (100000x5) 500,000
capital stock(100,000x5) 500,0000
A credit entry is made in a shareholder's books after getting bonus shares. The normal balance for equity holdings is a credit balance.
debit cash / bank 1400000credit share capital 1400000
Debit shares in companyCredit cash /bank
debit bonus expensecredit unpaid bonus payable
Debit Cash / bankCredit Shares in share capital of business
No need to pass any Entry Because u need not to pay any amount in respect of such Shares,Just increase the no. of Shares. Ok SONU BHOJWANI No need to pass any Entry Because u need not to pay any amount in respect of such Shares,Just increase the no. of Shares. Ok SONU BHOJWANI
A credit entry is made in a shareholder's books after getting bonus shares. The normal balance for equity holdings is a credit balance.
debit cash / bank 1400000credit share capital 1400000
How do you complete an entry for 2000 shares at 9?
Debit cash / bank 100000Credit share capital 100000
Debit shares in companyCredit cash /bank
You would make the journal entry the same way you would make it if they were not free shares. You would use the estimated or known value of the free shares to make the entry.
debit bonus expensecredit unpaid bonus payable
Debit Cash / bankCredit Shares in share capital of business
Debit bonusCredit cash / bank
suman
Based on australian standards. Dr application of shares Cr Cash Trust