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Company audit balance sheet

Himanshu Agarwal (Proprietor) (186 Points)

22 February 2022

Dear Team
XYZ pvt ltd was incorporated on sep 2020 and bank account was open in dec 2021 and subscripttion amount was received then in dec 21.

in the FY 20-21 BALANCE SHEET
HOW WILL WE SHOW THE SHARE CAPITAL in case no other single transaction was done?

will both asset and liability side would be zero?

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9 Replies

sabyasachi mukherjee (27574 Points)
Replied 22 February 2022

Fresh infusion of promoters capital.
It's quite logical.

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prasad Nilugal ( GST Practitioner & Accounts ) (14803 Points)
Replied 22 February 2022

Any preliminary expenses incurred during the incorporation of the company that you have to write off in the coming years , same you have to show on the Deffered Asset , Asset side , Preliminary expenses not written off . ( check IND AS)
In addition to above ,Show Share capital on liability side and Bank account on the Asset side of the Balance sheet .

Himanshu Agarwal (Proprietor) (186 Points)
Replied 22 February 2022

Dear All,
there was no bank account or transaction done in FY 20-21.
BANK ACCOUNT or first transaction was done in FY 21-22.

prasad Nilugal ( GST Practitioner & Accounts ) (14803 Points)
Replied 22 February 2022

Ho, Sorry I thought transactions took place in 20-21.

prasad Nilugal ( GST Practitioner & Accounts ) (14803 Points)
Replied 22 February 2022

As per companies act 2013, all compliance i,e oping of Bank account , issue of shares , first AGM must be done within the stipulated period form the date of Incorporation of the Company .

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 22 February 2022

It can't be zero , A company can't be formed without minimum paidup share capital

1 Like

sabyasachi mukherjee (27574 Points)
Replied 22 February 2022

A company can be formed with minimum share capital.

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 22 February 2022

With zero capital , company formation going into lapses

1 Like

prasad Nilugal ( GST Practitioner & Accounts ) (14803 Points)
Replied 23 February 2022

Same is I explaining , you have to do all compliance , like Minimum Share capital , Bank account immediately after Incorporation of the company , within stipulated time period , you can not keep it Zero till the year end .