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Accounting treatment of transfer of shares between share holders
Hi,
I would request a suggestion based on the below facts:
There are two share holders of the company namely A & B. The company issued 200 shares & 100 shares to A & B respectively @ of Rs.10 each.
Now the shareholder of B transfers the shares of him to A @ 100 each.
will there be any other accounting entry in the books of company other than the following:
Share Capital-B a/c Dr xxxx
to Share Capital -A Cr xxxx
And also what will be the accounting treatment in the books of A.
If A is the holding company of the said company, what will be the accounting treatment while consolidation.?
Replies (2)
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The equity of
Cr. A capital 1000
Cr. B capital remains the same
Market cap is for valuations. I have never seen a single problem related to revaluation of equity cause that upset the balance sheet.
EPS also doesn't use revalued amounts in its formula.
Hence
Cr. A capital 1000
Dr. B. Capital 1000
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