28 June 2016
Dear Experts,
In a private Company there is conflicts between two directors, so one of the director has given Rs. 7 Crore to another Director for Takeover of Business. So I want to Know the Accounting treatment as well as Journal Entry of the transaction. Second doubt is, to pay this Rs
7 crore Purchasing Director has taken loan from Bank on his name by Mortgaging his personal house. Now on 01/04/2015 he transferred the loan on the name of Company, what will be the journal entry for that & accounting treatment of Interest, whether it is to be capitalised or charged to Revenue? Please help me out .
28 June 2016
Hi Ajay, Are the two directors also the only directors with the company and the only shareholders of the company. Please clarify the above.
28 June 2016
Now you are just acquiring the shares of the company , the following entry would be made in your books Investment in shares(the shares you tooked of the director) To Bank and in books of company no treatment as the sharecapital remains the same only % of ownership has been transferred
29 June 2016
but the payment to another director is made from company. Director who has taken over the business paying the consideration to another Director by taking loan on the name of the company
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