hello forum members.
i have heard that all financial transactions in a pvt ltd company are done through cheques.(even payment of sweeper)
is it true??
if not then how does one withdraw cash from the bank? i ask this bcoz i have heard that because a pvt ltd company shows 1 lakh as start up capital cash in hand one cannot write a self cheque and withdraw money?
Hi
Promoters issue cheques in favor of Company for allotment which is deposited in Bank. It may be show as Bank or cash in hand.
Yes agreed with Hardik Sir, ones the money is deposited it can be withdrawal for making payments either by cheque and cash.
But the minimum paid up capital requirements i.e. Rs. 1 lac paid up capital needed to be maintain by the Company in bank account and/ or by way of cash.
thanks for the prompt answer.
so i am a director of a pvt ltd company and i need cash then i can write a self cheque and withdraw money from the bank?
i am still confused bcoz someone told me that i cant do so because i need to maintain 1 lac cash in hand.
And if i am showing 1 lac cash -in -hand then why do i need to withdraw cash from the bank??
can a Ltd compay take cash for expenses of Company from its employee..??
CAclubindia
