What is the journal entry for a stock split?

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Answer

1172369

2026-07-17 04:51

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1. For stock split there is no general entry passed as there is no change in the value of stocks just change in the number of shares.

Example:

If you have 10 shares of $10 each then total value is $100, if company decide to Split 2 to 1 then 10 became 20 shares of value of $100, so unit value is reduced to $5 each share but no change in the total value of shares.

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