Share at discount

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2013 Co. is Pvt ltd and incorporated in April 2013 and want to issue share at discount by 80% (i.e.100 -80 ) issue at 20 so please guide the procedure and chance of sanctioneing discount. If you provide accounting treatment will help

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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18 June 2013 Just pass board resolution in this regard and allot the shares at discount.

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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18 June 2013 The accounting entries shall be as under:

Bank Account Dr 80
Share Discount A/c Dr 20
To Share Capital 100
(being shares allotted on discount)