24 November 2011
Dear Esteemed members my query is:
a company issued shares at face value. but inadvertently credited the securities premium account. i.e bifurcated the issue price into face value and premium. how can this be corrected? do the company need to follow procedure for reduction of capital? any case law on the subject, please mention/
25 November 2011
I think it is an accounting mistake. Before the finalization of your balance sheet you may rectify the same by debiting the SPA and crediting the share capital account.
CAclubindia
