Payment made by director on behalf of company
This query is : Resolved
27 December 2011
urgent
company director got the loan from his relatives in his saving a/c and then after paid same amount for company's license fees out of his saving account .
what accounting treatment should be given for this transaction in the book of company or is there any issue as per company act.
company director got the loan from his relatives in his saving a/c and then after paid same amount for company's license fees out of his saving account .
what accounting treatment should be given for this transaction in the book of company or is there any issue as per company act.
27 December 2011
No issues.
In your books--
License Fees A/c Dr....
To Director A/c
Later you can repay the same---
Director A/c Dr...
To Bank A/c..
In your books--
License Fees A/c Dr....
To Director A/c
Later you can repay the same---
Director A/c Dr...
To Bank A/c..
28 December 2011
It is a violation of section 58A of the companies Act,1956 since director's can't give loan to company out of borrowed amount.
Message likes :
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29 December 2011
Agreed with Chackrapani Ji. Compliance of Companies Deposit Acceptance Rule and section 58A of companies Act required
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