Accounts

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Souvik Kumar Ghosh (Querist)
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11 September 2011 Please mention the nature of the following accounts with regards to the Golden Rule:

1. capital reserve

2. C.R.R.

3. Share allotment a/c

4. Discount on issue of shares

5. Provision for Depreciation

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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26 September 2011 Souvik Kumar Ghosh
( Author )
11 September 2011
Please mention the nature of the following accounts with regards to the Golden Rule:

1. capital reserve- Liability account in the form of reserves

2. C.R.R.- also capital reserve

3. Share allotment a/c - such account does not raise at the balance sheet date as it is personal account being created to represent the cash/ bank balance of persons who had given as capital contribution on company, to be shown as liabilty and on allotment, the liabilty towards such person is converted as libility towards members of company

4. Discount on issue of shares- Miscellaneous expenditure in the nature of derrered expenses account

5. Provision for Depreciation - It is provison account which accumulates the depreciation of the asset. it is a provision for dimuliation in the value of asset and always to be deducted from the asset.