Accounts

Souvik Kumar Ghosh (CA Final) (1368 Points)

11 September 2011

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

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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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