Joseph Samuel (Accountant) (75 Points)
12 July 2019Dear Sir/Madam,
What is the journal entry, when a owner/MD of a Pvt. Ltd. company brings working capital into business to meet some urgent current office expenses? The amount is between Rs. 1,000 to 20,000. Is it something like - Cash/Bank A/C - debit'and owner(name of the owner) A/C - credit ? or any other?
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5707 Points)
Replied 14 July 2019
Why loan account, it is additions to the capital. So credit Capital account.
Joseph Samuel
(Accountant)
(75 Points)
Replied 15 July 2019
Ok, but do we need to issue shares for that additional capital amount he/she (MD) brings in? or do we need to change price per share according to the new capital amount brings in? And one more doubt, for example if the authorized capital is fully utilized, doesn't the commencement of this new capital breach the authorized capital limit?
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
CAclubindia
