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Cash in hand

Divya Garg (Director) (178 Points)

19 September 2012

For our registered PVT ltd company, we didn't have bank account till last month and were maintaining all the inital capital of 100,000 as cash hand.

We showed this capital as 100,000 as cash in hand. After opening of the company bank account last week, do we have to deposit this money into our bank company account by cash deposit or directors can transfer it from their personal account to company account via NEFT ? Is this acceptable ?

Also, if a director was supposed to transfer say 50,000 for his shares... can he transfer 60,000 instead of 50,000 ? Can we show remaining 10,000 as loan from director to the company and 50,000 as payment for his shares ?

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3 Replies

CA C.JANANI (partner) (270 Points)
Replied 19 September 2012

Yes. Both are acceptable. NEFT can be done from the director's account. But for accouting purposes ,this will be reckoned as the date of contribution of capital.

As well the excess can be traeted as loan subject to Articles and other compnay law provisions.

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without capital how compny can be created

CA C.JANANI (partner) (270 Points)
Replied 19 September 2012

Company cannot be created without capital.The promoters and directors name is mentioned as contributories of capital in memorandum. It is due in books .

In actual practice ,in the case above the amount will be recorded as received on the date of NEFT.

Otherwise , how can money flow from personal accounts of diretcors when capital had already been contributed.

Otherwise since compnay is separate entity, directors cannot NEFT Adhoc.

Otherwise cash can be deposited in company's name directly.