19 May 2008
Explain the Tax and accounting treatment of Shares lost. Whether the shares are to be written off? If yes what shall be the treatment of Dividend received on such shares?
20 May 2008
i still don't see any difference, you can request company to issue duplicate shares.
(formal procedure should be same in this case also)
but if you don't want duplicate and only want to write-off, then debit the amount of shares lost (same as lying in balance sheet) in P&L (may be as "cost of shares lost") and credit investment a/c or other a/c where u debited cost of shares at the time of purchase.
if you receive dividend later, simply recognise as dividend income or other income.
YOu cannot pass any accounting entry till the date your name is struck off from the register of members of the Company.
Further, I dont understand why are you not initiating in getting back the shares (physical form) from the Compnay.
This is a very simplified process wherein you have to fill some necessary forms issued by the Compnay and likewise you may get the shares in physical form (if shares are not offered by the Compnay for demat)
CAclubindia
