internal reconstruction
This query is : Resolved
04 October 2010
if shares r surrendered by shareholders when the com. is continuesly incurring losses..............& part of surrendered shares r issued to discharege a outside liabilities..........how will it be treated?
05 October 2010
Current liabilites Dr
To Shares forfieted.
The liability would be discharged off by the forfeited shares as if new shares are issued to them.
To Shares forfieted.
The liability would be discharged off by the forfeited shares as if new shares are issued to them.
05 October 2010
and rest of the surrendered shares which were not reissued .........will be credited to "capital reduction a/c"
05 October 2010
and if shares given to outside liability, may be of higher value or lesser value regarding the actual value of liability.
in this case ,profit or loss on discharging these outsiders, will be transfered to capital reduction a/c.....?
in this case ,profit or loss on discharging these outsiders, will be transfered to capital reduction a/c.....?
05 October 2010
For surrendering shares:
Share capital a/c dr.
To Share Surrendered a/c
For cancellation of liabilities who will be receiving shares:
Liabilities a/c dr.
to Capital Reduction a/c
For issue of shares to the liabilities:
Share Surrendered a/c dr.
to share capital
balance of share surrendered transferred to capital reductiona/c.
Share capital a/c dr.
To Share Surrendered a/c
For cancellation of liabilities who will be receiving shares:
Liabilities a/c dr.
to Capital Reduction a/c
For issue of shares to the liabilities:
Share Surrendered a/c dr.
to share capital
balance of share surrendered transferred to capital reductiona/c.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Multiple payment of self assessment tax for A Y 2025-2026
- CAPITAL GAIN REDEVELOPED FLAT
- Requirement under FEMA &RBI
- REGARDING ITR FILING QUESTION
- CLOSING STOCK QUERY
- Correction in TDS return New Traces Portal
- ITC BENEFIT ON BROKRAGE PAID
- F&O reporting in ITR
- DUE DATE FOR ITR FILING
- Gst reverse charge mechanism to be claimed in the month of payment
- WHERE I SHOW GST 0% INVOICE IN GSTR1 (EITHER TABLE 7 OR TABLE 8)
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
