06 April 2012
Dear Sir, Pl clarify the following Is it possible a company repay the share capital along with profit at the time of voluntary winding up?
i.e. M/s. JKR Pvt Pvt Ltd has stopped its business on 31.03.2011 & it's statement of account is as follows
Share capital is Rs.1000000 Reserves & Surplus(P & L) Rs.500000
Cash Rs. 1500000 Now it has decided to repay the share capital with Profitas it is going to winding up.Is it valid? Regards, S.Jegadeesan
06 April 2012
At the time of winding up the company has to first repay all its liabilities then after what remains is to be divided between its shareholders.
09 April 2012
Thank you so much.So you meant a company can prepare the statment of Account as nil in respect of all the ledger(after settle the liability).Am i correct ?
CAclubindia
