when our bonus shares shown in the cash flow statement
what will be the line of adjustment in this case
Sankar is correct!
Bonus shares are issued to the existing shareholders as a reward for their loyalty and faith that they have on the company. When bonus shares are issued, then the shareholders don't pay any cash, however, the total shares balance depicts a rise in the Company's Balance Sheet. This should not be mistakenly considered as similar to the case of issue of equity and preference shares. Hence, the rise in the balance of the equity shares (due to issue of bonus shares) is not taken into consideration while preparing Cash Flow Statement as the cash position of the company remains unaffected.
Bonus shares are issued to the existing shareholders as a reward for their loyalty and faith that they have on the company. When bonus shares are issued, then the shareholders don't pay any cash, however, the total shares balance depicts a rise in the Company's Balance Sheet. This should not be mistakenly considered as similar to the case of issue of equity and preference shares. Hence, the rise in the balance of the equity shares (due to issue of bonus shares) is not taken into consideration while preparing Cash Flow Statement as the cash position of the company remains unaffected.