17 June 2014
Mr.Y invested Rs.20 Lakhs in x Pvt ltd(A Movie making comapny) at 5 % share of overall profit of a single movie venture but whole 20lakhs has been turned into loss ,He is not a partner,He is not a stake holder in the company.He is only entitled for above said 5 % profit for his investment in the said single venture.so how to treat this in books of Accounts..??
17 June 2014
A private company is separate legal entity and profit/loss of the company is not your profit /loss. If there is profit, the company will retain the profit. If company distribute its profit, then shareholder will get dividend as per their share holding.
plz clearly state what types of investment is it.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
17 June 2014
Here the company has taken Rs.20lakhs from Mr.Y for a single particular venture(a movie making) with a promise to part 5 % of profit/loss in that venture ,He has not issued any kind of Equity.
17 June 2014
company can not share profit with third party. plz go to consult professional by carrying agreement as each point should be read out carefully to decide what type of agreement it is.
17 June 2014
@Nikhil, from his question it is not clear that it is JV. Sort of JV ? there is no such legal term like SORT OR JV. If it is JV, JV should have been formed.
17 June 2014
I am saying that he should have formed a JV. under his current position, with companies act 2013, it would reflect as a deposit from unrelated parties and consequences shall follow