Securities premium account
This query is : Open
25 May 2012
i am on audit of a pvt. ltd company where by the company had issued 3000 shares of face value 10 totaling Rs.30,000
the person who bought the share was taken in as a director !
he paid in total 24lakhs for these shares !!!
shall it be accounted as below : ???
rs 30000 - share capital
rs 23,70,000 - sec. premium ?
and is there a need 2 deposit the premium amount in some certain separate bank ac ??
or can the company use the premium on day to day business ???
if not,what shall be the accounting entry for these shares ?
show shall i audit the above transactions ???????????
the person who bought the share was taken in as a director !
he paid in total 24lakhs for these shares !!!
shall it be accounted as below : ???
rs 30000 - share capital
rs 23,70,000 - sec. premium ?
and is there a need 2 deposit the premium amount in some certain separate bank ac ??
or can the company use the premium on day to day business ???
if not,what shall be the accounting entry for these shares ?
show shall i audit the above transactions ???????????
26 May 2012
Yes, 30000 share cap, 237000 securities premium.
No need of seperate deposits..
Further company can not use premium for day to day business as it is not allowed u/s 78 of companies act.
No need of seperate deposits..
Further company can not use premium for day to day business as it is not allowed u/s 78 of companies act.
Message likes :
1 times
26 May 2012
well the co has spent the amount already so what shall be my line of action now ??
more if the co. cant use that amt than what shall be done to that amount
more if the co. cant use that amt than what shall be done to that amount
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
- GST Regis.
- Tax on capital gains revoked us 54f
- Inventory of finished goods
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Confusion around Form 26QB fields
- Refund of AY 22-23
- Disallowance of Section 43B(h) to sez units
- Sale of property furniture sale
- Applicability of Ind As to associate of associate
- HSN Details in IFF/GSTR-1 & in GSTR 9
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
