Accounting treatment of transfer of shares between share holders

nikhil jain (CA-Final-Student) (58 Points)

16 February 2017  
Hi, I would request a suggestion based on the below facts: There are two share holders of the company namely A & B. The company issued 200 shares & 100 shares to A & B respectively @ of Rs.10 each. Now the shareholder of B transfers the shares of him to A @ 100 each. will there be any other accounting entry in the books of company other than the following: Share Capital-B a/c Dr xxxx to Share Capital -A Cr xxxx And also what will be the accounting treatment in the books of A. If A is the holding company of the said company, what will be the accounting treatment while consolidation.?