Sweat equity shares for pvt company

VIKAS.A (SOMETHING IS BETTER THAN NOTHING) (1095 Points)

24 July 2013

Hi Friends,

Please help regarding this question,

A Pvt.ltd company wants to issue sweat equity shares (NON CASH) for their directors on their intellectual property,

now what should be shown on the asset side of balance sheet, Please reply ASAP friends,

Thanks in advance.

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5 Replies

Ashish Sharma (Service) (1028 Points)
Replied 24 July 2013

Read below

/articles/checklist-for-the-issue-of-sweat-equity-shares-by-unlisted-companies-5596.asp

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varun (article assistant) (86 Points)
Replied 24 July 2013

Employee benefit a/c Dr.

To Share capital a/c

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VIKAS.A (SOMETHING IS BETTER THAN NOTHING) (1095 Points)
Replied 24 July 2013

@ Ashish,

thanks for the reply,

But now what term that i can mention on the asset side of balance sheet.( i need technical term)

Ashish Sharma (Service) (1028 Points)
Replied 24 July 2013

Hi vikas,

Are you asking for technical term for Intellectual property?

VIKAS.A (SOMETHING IS BETTER THAN NOTHING) (1095 Points)
Replied 24 July 2013

My question is whether i can create head like intellectual property on asset side, will that be apt??, i need to know whether is that acceptable.

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