a private limited company having authorised capital of 1 lac with 10000 shares...has raised funding of 1 crore by giving 5 pcnt equity.
now how to enter the funds received in books of accounts...and how to make share transfer agreement as our shares are of only 500 of rs 10(5% of 10000). which is 5000 rs ...but amount received is 1 crore...do we need to increase the authorised capital or issue share on premium.
Menu
Valuation of shares for funding
Replies (2)
Quick Summary
You can not issue shares more than Authorised share capital , So First you have to increase your Authorised Share capital .
The face value of the shares is Rs. 10. So total shares to be transferred is of face value of Rs. 5000/-. The balance amount received being Rs. 99,95,000/- (1crore-5000) can be transferred to securities premium account.
Entry in books of accounts will be:
Bank A/c Dr. Rs. 1,00,00,000/-
To Equity capital A/c Rs. 5000/-
To Securities premium A/c Rs. 99,95,000/-
Recent Topics :
- NRI since March 2023 – resident savings acco
- My All-Time Top 15 Indian Web Series
- Wrong date of invoice
- Paper 6 - IBS
- Chhath Puja 2026 Dates Timing Tithi
- Tax Benefit on Second Property
- IPO application checklist: 18 rules that decide wh
- NSE IPO Price, GMP, Allotment Date and Listing
- Gst tax rate
- Cash deposited by customer
Related Topics :
CAclubindia
