Issue of share capital to loan creditors
This query is : Resolved
06 December 2013
A private limited company was incorporated 2 years back and has obtained loan during the course of business.
Now the company wants to issue shares to the two loan creditors and convert their outstanding balances to share capital. However the value per share to be issued to each will be different. For eg. creditor A has Rs.60,000 outstanding and he may be issued 6000 shares @ Rs.10 each. creditor B has Rs.50,000 outstanding and he may be issued 2500 shares @ Rs.20 each.
Can this be done at once, or can there be a time gap in converting each creditor? Also where will the difference in face value be debited in the books?
Now the company wants to issue shares to the two loan creditors and convert their outstanding balances to share capital. However the value per share to be issued to each will be different. For eg. creditor A has Rs.60,000 outstanding and he may be issued 6000 shares @ Rs.10 each. creditor B has Rs.50,000 outstanding and he may be issued 2500 shares @ Rs.20 each.
Can this be done at once, or can there be a time gap in converting each creditor? Also where will the difference in face value be debited in the books?
06 December 2013
Hi
It should be issued at different date, because you can not issue shares at differential price on same date.
It should be issued at different date, because you can not issue shares at differential price on same date.
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
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- FORM 26A APPLICABILITY
- LC charges in relation to Asset purchased should be Capitalised ?
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- Regarding TDS Applicability For Director Remuneration
- Multiple trade mark
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
