Roc
This query is : Resolved
16 May 2012
Please help me on the following :
A Pvt Ltd company was incorporated in 2010 then two director paid to company Rs. 50000.00 each
Entry:
Cash …Dr 50000.00 x 2
To Capital 50000.00 x 2
So in 10-11 balance sheet authorized capital is 1.00 lac
After filing of Form 5 for increasing of Authorized capital
On 05.03.12
Managing Director paid Rs. 6.00 lac
Entry:
Bank ….Dr
To Capital or not ??
One third party issues a cheque Rs. 1000/- for opting for director on 30.03.12
My question is in Balance Sheet 31.03.2012
What is authorized capital ?
& Paid up capital ?
Please help me on the following :
A Pvt Ltd company was incorporated in 2010 then two director paid to company Rs. 50000.00 each
Entry:
Cash …Dr 50000.00 x 2
To Capital 50000.00 x 2
So in 10-11 balance sheet authorized capital is 1.00 lac
After filing of Form 5 for increasing of Authorized capital
On 05.03.12
Managing Director paid Rs. 6.00 lac
Entry:
Bank ….Dr
To Capital or not ??
One third party issues a cheque Rs. 1000/- for opting for director on 30.03.12
My question is in Balance Sheet 31.03.2012
What is authorized capital ?
& Paid up capital ?
17 May 2012
1. There shall not be any entry in the books for increase in the Authorised Share Capital. There is no financial transaction taking place when a company raises its Auth. Share Capital. It just means that the company is 'authorised' to raise that amount as share capital.
2. When the Managing Director paid Rs 6 lacs towards further share capital, the entry shall be same as it was in the first case. No change... (Except that it will be debited to bank if the amount was received thro' bank):
Bank/Cash - Dr.
To Share Capital - Cr.
3. What has the third party paid for? If its towards acquiring qualifying shares, the entry will again be same as above.
2. When the Managing Director paid Rs 6 lacs towards further share capital, the entry shall be same as it was in the first case. No change... (Except that it will be debited to bank if the amount was received thro' bank):
Bank/Cash - Dr.
To Share Capital - Cr.
3. What has the third party paid for? If its towards acquiring qualifying shares, the entry will again be same as above.
17 May 2012
It is a fact that there is no entry of autorised capital, but one has to pay due consideration to the fact that alloted share capital should in no case be more than authorised capital.
So if subscribed capital is more than authorised capital then in that case your authorised and paid up capital will remain same and rest will remain "share application money pending allotment"
Therefore if ur total authorised capital after enhancement is 7 lacs, ur paid up capital will be 7 lacs and share application money pending allotment will be Rs.1000.
So if subscribed capital is more than authorised capital then in that case your authorised and paid up capital will remain same and rest will remain "share application money pending allotment"
Therefore if ur total authorised capital after enhancement is 7 lacs, ur paid up capital will be 7 lacs and share application money pending allotment will be Rs.1000.
17 May 2012
thanks to both experts
in my case Auth. capaital increases to 25.00 lac
then in balance sheet 11-12 to show
then Auth. capital 25.00 lac
issued, subscribed paid up capital Rs. 701000.00 lac (share application money 1000/- will be included in return of allotment using with Form 2)
is it right ? please help
in my case Auth. capaital increases to 25.00 lac
then in balance sheet 11-12 to show
then Auth. capital 25.00 lac
issued, subscribed paid up capital Rs. 701000.00 lac (share application money 1000/- will be included in return of allotment using with Form 2)
is it right ? please help
17 May 2012
I think u are right now.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
