Limited Company Formats (AS Level Only): Bonus Issue Journal Entry Format (Copy)
Bonus Issue Journal Entry Format
Standard Bonus Issue Journal Entry (Exam-Preferred)
| Date | Particulars | Dr (Amount) | Cr (Amount) |
|---|---|---|---|
| Share Premium Account (Dr) | xxxx | ||
| Ordinary Share Capital Account (Cr) | xxxx | ||
| (Being Bonus Issue Of Ordinary Shares Made To Existing Shareholders) |
- Bonus Issue Means Shares Issued Free Of Cost
- No Cash Or Bank Involved
- Share Premium Used First (AS Level Focus)
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Bonus Issue Using Retained Earnings (When Share Premium Insufficient)
| Date | Particulars | Dr (Amount) | Cr (Amount) |
|---|---|---|---|
| Retained Earnings (Dr) | xxxx | ||
| Ordinary Share Capital Account (Cr) | xxxx | ||
| (Being Bonus Issue Of Ordinary Shares Out Of Retained Earnings) |
- Used Only If Share Premium Is Not Available
- Retained Earnings Reduced
- Ordinary Share Capital Increased
Bonus Issue Using Both Share Premium And Retained Earnings
| Date | Particulars | Dr (Amount) | Cr (Amount) |
|---|---|---|---|
| Share Premium Account (Dr) | xxxx | ||
| Retained Earnings (Dr) | xxxx | ||
| Ordinary Share Capital Account (Cr) | xxxx | ||
| (Being Bonus Issue Of Ordinary Shares Using Available Reserves) |
- Total Debit Equals Nominal Value Of Bonus Shares
- Clearly Split Sources
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Bonus Issue Journal Entry Without Date Column (Accepted)
| Particulars | Dr (Amount) | Cr (Amount) |
|---|---|---|
| Share Premium / Retained Earnings (Dr) | xxxx | |
| Ordinary Share Capital (Cr) | xxxx | |
| (Being Bonus Issue Of Ordinary Shares) |
- Used In Short Questions
- Narration Still Required
Bonus Issue Amount Working (Linked Format)
Bonus Issue Calculation
| Details | Amount |
|---|---|
| Existing Ordinary Shares | xxxx |
| Bonus Ratio | x : x |
| Bonus Shares Issued | xxxx |
| Nominal Value Per Share | $x |
| Total Amount Capitalised | xxxx |
- Total Amount Capitalised = Bonus Shares × Nominal Value
- Same Amount Used In Journal Entry
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Items Affected By Bonus Issue (AS Level)
- Ordinary Share Capital ↑
- Share Premium ↓ OR Retained Earnings ↓
- Total Equity Remains Unchanged
Items Never Affected By Bonus Issue
- Cash
- Bank
- Profit Or Loss
- Total Equity
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Presentation Rules For Bonus Issue Journal Entries (Exam Scoring)
- Always Credit Ordinary Share Capital
- Use Nominal Value Only
- Do Not Record Any Cash
- Clear Narration Mandatory
Compact Bonus Issue Journal Entry (Emergency)
Share Premium / Retained Earnings Dr xxxx
Ordinary Share Capital Cr xxxx
(Being Bonus Issue Of Ordinary Shares)
One-Glance Exam Template
Bonus Issue
Capitalise Reserves
Credit Share Capital
No Cash Involved