CMA. Murali (Cost Accountant) (508 Points)
29 October 2017
Law Aspire
(CS)
(755 Points)
Replied 18 November 2017
But minimum share capital is to be made paid up immediately on incorporation..
Pls clarify
satish
(teaching)
(2046 Points)
Replied 18 December 2017
In this case expenditure is to be treated as expenditure before incorporation and after incorporation of the company
Here any expenditure which is incurred for incorporation is preliminary expenditure. these expenditure are to be recognised at statutory general meeting.
Entry is : Preliminary Exp A/c Dr.
To promoter a/c
Expenditure which is incurred after incorporation is company's expenditure.
when company collecting fund from promoters:
Bank a/c Dr.
To Promoters A/c
Promoter's should be disclosed as part of Current liabilities. These amount will get settled with in short period i.e. after issue of shares to public.
CAclubindia
