Have a question related to buying a land in private limited company name.
Some facts about the company:
1. This is a new property development company and this is the first transaction happening in terms of financial transaction.
2. Company has a new bank account and new directors.
3. Company has a paid up capital of Rs 1 lakh.
Questions:
1. Lets say, the company is planning to buy a residential plot with a registered value of Rs 10 lakh. How should the money transaction for this land registration happen? Should the money be deposited in company's bank account and withdraw from that account?
2. If withdrawing from this account, can it be withdrawn using cash? Reason for this is the sellers of the land want the money by cash transaction.
3. What is source of money to company? i.e., who can fund the company for purchase of land? Can non-directors or non-shareholders fund money. If so, how to account them properly.
4. Is it possible to purchase this land without bringing the money into company's bank account and do a cash transaction? If so, how to account them properly.
Highly appreciate a knowledgeable CA to reply and Thanks in advance for your reply.
CAclubindia
