A Private Limited Company has Authorised Capital of Rs.1 Lakh.
Company has been continuing for many years ‘Unsecured Loan from Director-cum-Shareholder’ of Rs.2.25 Lakhs in the Balance Sheet, however, its paid up Capital is only Rs.1 Lakh.
In view of CA 2013, I have the following query(s):
What has to be done for the ‘Unsecured Loan from Director-cum-Shareholder’, which has been continuing and reflecting in the Balance Sheet for many years?
Please reply…………………. with any URL / relevant Section for me to understand in detail.
What are the effects to be done in the Company’s Balance Sheet with immediate effect?
Please reply………………….
Should there be any qualification/remarks by the Auditor, in case, the Company still continue with the Share Application Money?
Please reply………………….
Thanks a lot to all in advance for doing the needful.
16 September 2014
It may be read as UNSECURED LOAN from Director-cum-Shareholder’.
Somewhere, I noticed that Unsecured Loan from Director is permissible provided that Director should produce a Declaration to that effect.
As I do not have sufficient knowledge and clarity, I posted my query.
Hence, request every one to guide me properly with the appropriate supporting so that I will go through, understand and improve myself with your guidance.
CAclubindia
