URGENT

[sweta todi]

Dear All,

 

Kindly refer to the case below:

 

A private limited concern has authorised capital of Rs. 50 lakhs. It has also been incorporated with paid - up capital of Rs. 50 lakhs (by mistake).

 

Now, the situation is that it has to prepare its balance sheet for the first year. It has paid - up Capital of Rs. 50 lakhs on Liabilities side. What and how can the Company prepare its balance sheet? What items can it show on Assets side? What will be the correct accounting procedure?

 

It has not deposited the Paid -up capital entire amount in the Bank. It has just deposited Rs. 1 lakh.

 

Please help me out. It is a bit urgent.

 

--

Warm Regards,

Sweta Todi

M.Com, A.C.S

9833189497

[Sudeep]

Dear sweta Todi

 

 

its only 50 lakh capital( liablites) & 50 lakh assets

 

 

Authorised capital is the maximum amount of capital that a company can raIse so

paid capital is amount invested by the company, so please see the schedule 6 format once & for totalling of liablities side u have to consider only paid up capital . Don't consider the authorised capital.

In ur case the company has utilized full amount of capital only .

 

Format

l

Liabilities		Amt		Assets		Amt
Share capital		FA
		Investments
Authorised Cap
(Give description )	5000000	Current Assets
		Inventory
Paid up capital	5000000	Debtors
		Cash	5000000
Total		5000000				5000000

                                      

 

If any assets purchased break that 50lakh & incorporate the exact amount

If u want to give horizontal balance sheet means see Sch 6.

 

 

 

Sudeep

9740396498

--

Sudeep

[Sudeep]

Dear Sweta

 

please find the format

Liabilities	Amt	Assets	Amt
Share capital		FA	0
		Investments	0

Authorised Cap
(Give description )	5000000	Current Assets

		Inventory	0

Paid up capital	5000000	Debtors

0
(Give description  for no shares & cost of shares)		Cash	4900000
		Bank	100000
	5000000		5000000

On Mon, Sep 12, 2011 at 4:53 PM, sweta todi <todi.sw...@gmail.com> wrote:

--

Sudeep

[sweta todi]

Dear Sudeep,

 

The Company has deposited in bank Rs. 1 lakh as paid - up capital. Further, my question is that will so much of cash not create any problem I mean Income tax act or other act i am not aware. also if the company will show so much cash then will this question not arise that if there is so much cash then why paid - up capital amount is not deposited in bank. I mean whether as per law, accounting standards what will be the right solution.

 

Warm Regards,

Sweta Todi

M.Com, A.C.S

9833189497

[sweta todi]

Dear All,

 

Please Advice. Its  a bit urgent.

 

Warm Regards,

Sweta Todi

M.Com, A.C.S

9833189497