accounting effect for stamp duty payment for Pvt. Ltd. Co.

vaishali (accountant) (52 Points)

12 March 2010  

Hello everyone,

 

I want to ask regarding accounting of stamp duty payment for Pvt. Ltd. Co. For making stamp duty payment for  AOA & MOA of Pvt. Ltd. Co., we drawn Pay orders ithro one of the proprietary concern whose prop is one of the promoter of new Pvt. Ltd. Co.

Then what effect is to be given for this transaction in books of 1) Pvt. Ltd. 2) Prop. Concern 3) in indiv. Bal. sheet of prop.

 

For Pvt. Ltd we’ve applied for PAN & we’ll get it within 3-4 days & purchase & sale transaction will get started from April 2010 as we've to apply all other registrations with different depts.,  then what about the income tax return for F.Y.09-10. Whether the same exp will have to be booked under preliminary/ formation exp of co in pvt. ltd. &  this exp will be c/fd to next year ? what is the correct accounting treatment for this.

 

Can we show it as investment in indivi. bal. sheet of that prop.( who is the promoter for pvt ltd. ) ? what will be the accounting entries for the same all above three books of accounts.

Pls. reply

thanks in advance