29 September 2016
hi sir
one of the director has taken the funds from business more than his capital and quit the company
Ex: His share capital 500000
but he has taken from the company is 2000000
so please tell me how to adjust the entry URGENTLY.....
02 October 2016
It would be unwise to write off immediately the whole amount since other directors wouldn't agree with it. also you can sue the director and as per law of limitations, you've a period of 3 years to file an application against him in court. Hence I recommend to show it as receivable. Also writing off the entire difference of 15lakhs to p&l will be wrong immediately in the year of misshapen. So either show as receivable or if all directors agree that leave the amount, then write off.
to write off you will transfer the difference as bad debt.
CAclubindia
