Susmita Dutta, CA , CPA (CA ) (2141 Points)
03 September 2020An investor invested in a start up how to do the accounting entry and under which head?
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 03 September 2020
Check out what kind f investment it is. FVTPL.? Or investment interest as per business combinations in IndAS. Find out what does the investment hold in that start up eg. investment interest, associate, JV or subsidiary and treat accordingly.
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 04 September 2020
Investors Investment in Star up company will be Income for the company and if Not going to return back . Then accounting entry will be as follows .
Bank A/c Dr
Promoters Investment A/c Cr
( Being amount received towards investment )
Note - Promoters Investment A/c will be under Indirect Income ( Other Income ) under Profit & Loss A/c
This is my opinion you may consult with others also .
CAclubindia
