Please mention the nature of the following accounts with regards to the Golden Rule:
1. capital reserve
2. C.R.R.
3. Share allotment a/c
4. Discount on issue of shares
5. Provision for Depreciation
Souvik Kumar Ghosh (CA Final) (1368 Points)
11 September 2011Please mention the nature of the following accounts with regards to the Golden Rule:
1. capital reserve
2. C.R.R.
3. Share allotment a/c
4. Discount on issue of shares
5. Provision for Depreciation
C A kailash vyas
(propritor)
(48 Points)
Replied 12 September 2011
The nature is as under as per company act 1956
1. capital reserve--(PROFIT ON SALES OF CAPITAL NATURE ASSEST i.e. shares, share forfeited ,fixed assests--- hence ; CREDIT)
2. C.R.R. ---(capital redemption reserve is to be made at the time of redemption of share and debenture u/s 80 of the
company act Golden rule is ; CREDIT)
3. Share allotment a/c --(at the time of allotment of the shares SHARE APPLICATION A/C DEBITED AND
SHARE ALLTMENT CREDITED,hence nature is CREDIT)
4. Discount on issue of shares --(JOURANAL IS IF DIS.IS ON ALLOTMENT
SHARE ALLOTMENT A/C DR.
DIS.ON ALLTMENT A/C DR.
TO SHARE CAPITAL A/C
5. Provision for Depreciation--(SUCH ACCOUNT IS PREPARE WHEN FIXED ASSESTS SHOWS AT HISTORICAL
COST IN SUCH CASE FIXED ASSEST SHOWS IN B/S AT COST AND TOTAL DEP.
INCLUDING CURRENT DEP. JOURNAL ENTRIE WILL ;
DEPRICATION A/C DR. (CURENT )
TO PRO. FOR DEP. A/C
P&L A/C DR.
TO DEPRICATION A/C
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