Accounting
This query is : Resolved
01 February 2009
Is capital redemption reserve, Share premium account are nominal accounts? If not then what is their nature ?
CA. B.SRINIVASULU
(Expert)
01 February 2009
Redemptemption reserve and share preium accounts will fall under personal accounts.
They are treated like a giver because ultimately it will go to the shareholders who are persons.
Therefore rule relating to personal accounts has to be applied and not nominal account.
That is why we are crediting to share preium and redemption reserve account.
They are treated like a giver because ultimately it will go to the shareholders who are persons.
Therefore rule relating to personal accounts has to be applied and not nominal account.
That is why we are crediting to share preium and redemption reserve account.
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