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