Accounts and corporate law

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Arvind Ray (Querist)
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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/

RG - A Helping Hand

RG - A Helping Hand (Expert)
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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.

Have a chat with ur accountant.

RG

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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26 November 2011 Agree with the view of Richank ji...

You have to correct the entries and you cannot bifurcate the share capital without the permission of Court.

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