07 June 2013
what is the accounting treatment of promoters contribution for a private limited company?? whether it is shown under share capital or as shown under unsecured loans or liability??
10 June 2013
If you have issued shares, it is shown under share capital. If you have received repayable loan without security, show it as unsecured loan. If you have simply received some amount of money without issuing share capital or without obliged to repay, credit the same to capital reserves under shareholder's fund. It is not available for dividend purposes.
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