17 December 2013
Two persons wanting to incorporate a private limited company gave their CA, Rs. 1 lakh each by cheque in the CA Firm's name for Incorporation expenses. The company was incorporated with total ROC expenses of Rs 1.5 lakhs.
What should the CA Firm do with rest Rs. 50000.Should it withdraw it and give it to two directors or make cheque in the name of Company? What entry should the two directors make in their personal books of accounts and in the books of newly incorporated company for Rs. 2 lakhs paid, since they have subscribed shares of Rs. 1 lakh each?
CAclubindia
