Company accounts

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harshvardhan mittal (Querist)
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09 November 2011 sir,
(1) what is the main and exact difference between acts and rules?

(2) when shares originally issued at discount and re-issued also at discount, then what will be the journal entry for this situation at the time of the re-issue of shares and why?

Rajnish Singh

Rajnish Singh (Expert)
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12 November 2011 DEAR HARSG,

ACT REFER TO THAT PROVISION UNDER WHICH SUCH CIRCUMSTANCE OF RULE MADE.

RULE IS REFER TO UNDER THAT PARTICULAR ACT HOW DOES WORK SHOULD BE DONE.

SECOND.
ANY COMPANY CAN ISSUE THEIR SHARE AT DISCOUNT WHO PREVIOUSLY ISSUED IT OR AFTER 3 YEAR OF STARTING THE BUSINESS .ACCORDING TO COMAPNY ACT 1956 SECTION 79.

DISCOUNT ENTRY WILL BE DONE WITH ALLOTMENT MONEY .

SHARE ALLOTMENT
DISCOUNT ON ISSUE ON SHARE

TO SHARE CAPITAL A\C

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harshvardhan mittal

harshvardhan mittal (Querist)
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12 November 2011 but sir, when shares originally issued at discount, then entry is passed,

BANK A/C Dr.
DISCOUNT ON ISSUE OF SHARES A/C Dr.
SHARE FORFEITURE A/C Dr.
TO SHARE CAPITAL A/C

then sir why do we debit here DISCOUNT ON ISSUE OF SHARES A/C?

Rajnish Singh

Rajnish Singh (Expert)
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15 November 2011 DEAR HARSH

THE ABOVE SAID ENTRY BY YOU ARE MADE ON THE EVE OF FORFEITURE OF SHARE WHICH IS ISSUED ON DISCOUNT.

FOR THIS CLEAR REF .PLS GO THRU SHARE CHAPTER.

harshvardhan mittal

harshvardhan mittal (Querist)
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15 November 2011 thank you sir