How is the buy average of stocks in my holdings calculated when I get bonus shares? Why does buy average drop?

Zerodha Zerodha trivia
1


Trade Book 
 

Trade date Trade time Exchange Symbol Type Qty Rate
31-08-2016 10:26:46 NSE BAJFINANCE B 1.00 10850.00
04-11-2016 10:39:30 NSE BAJFINANCE B 1.00 994.00
04-11-2016 15:21:09 NSE BAJFINANCE S 1.00 992.50
11-11-2016 10:46:50 NSE BAJFINANCE B 10.00 883.00
11-11-2016 11:20:14 NSE BAJFINANCE B 10.00 880.00
11-11-2016 11:45:24 NSE BAJFINANCE B 5.00 871.00
11-11-2016 14:20:26 NSE BAJFINANCE B 3.00 860.00
11-11-2016 14:39:18 NSE BAJFINANCE B 2.00 855.00
11-11-2016 15:21:00 NSE BAJFINANCE S 7.00 861.80
11-11-2016 15:21:00 NSE BAJFINANCE S 5.00 861.20
11-11-2016 15:21:00 NSE BAJFINANCE S 18.00 861.15
11-11-2016 15:23:34 NSE BAJFINANCE B 5.00 860.00
15-11-2016 09:42:31 NSE BAJFINANCE B 5.00 806.00
15-11-2016 10:15:59 NSE BAJFINANCE B 10.00 778.55
15-11-2016 11:18:06 NSE BAJFINANCE B 1.00 767.00
15-11-2016 15:15:31 NSE BAJFINANCE S 16.00 819.50
16-11-2016 11:24:53 NSE BAJFINANCE S 5.00 880.00
21-11-2016 10:32:16 NSE BAJFINANCE B 10.00 830.00
21-11-2016 15:21:15 NSE BAJFINANCE S 10.00 832.00
   
2

On 31-08-2016, you bought 1 qty @ 10850,

On 08/09/2016, the company announced corporate action- Split & Bonus

Split FV Rs 10 to Rs 2 and Bonus 1:1

Now, after split qty 1 qty became 5 qty and price has dropped from Rs 10850 to Rs 2170/-

Again, there was the Bonus of 1:1, now 5 shares has been added @ Rs 0/-

On 11-11-2016, you had an added 5 qty @ Rs 860/- and on 16-11-2016 sold 5 qty @ Rs 880/-

As per FIFO 5 qty sold on 16-11-2016 got adjusted with 5 qty received in split

Now, current holding is 5 qty received in Bonus @ Rs 0/- and 5 qty bought on 11-11-2016 @ Rs 860/-

Avg. of 10 qty = (Rs 0/- + 860/-)/2 = Rs 430/-

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