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Accounting teratment

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Querist : Anonymous

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Querist : Anonymous (Querist)
07 June 2013 what is the accounting treatment of promoters contribution for a private limited company??
whether it is shown under share capital or as shown under unsecured loans or liability??

please guide me for the same.
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CA Sourabh Agarwal

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CA Sourabh Agarwal (Expert)
10 June 2013 If you have issued shares, it is shown under share capital.
If you have received repayable loan without security, show it as unsecured loan.
If you have simply received some amount of money without issuing share capital or without obliged to repay, credit the same to capital reserves under shareholder's fund. It is not available for dividend purposes.
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