Let’s say company A holds a minority stake in company B, a private firm, in the form of long term investments held for sale. So initially for this to happen, company A will credit its cash account and debit its Long term investments account. Now, say company B distributes bonus shares to its shareholders, what will the treatment be for company A in this case, if any?
Also, should company A decide to sell its bonus shares in the future, what would the double entry be then?