Regarding Accounting treatment of initial capital in Private Limited Co.

This query is : Resolved

Francis George (Querist)
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08 August 2023 Hello, could anyone help me in this query,

An Individual who runs a Proprietorship business started a Separate Private Limited Company as a Managing Director in which he invested Rs. 10 lakhs for new account opening of Private limited company as his part of his share capital. How to record the initial share investment made in following:

1) In the Books of Sole Proprietorship Accounts &
2 ) In the books of Private Limited Co. initial capital introduced by a Managing Director.

What are the accounting treatment & under which heads the respective accounts should be created.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 August 2023 1 In the Books of Sole Proprietorship show it as Investment in Private limited company.
2 In the company show it in share capital.

Francis George

Francis George (Querist)
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09 August 2023 Ok Sir Thank You Very Much.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 August 2023 You are welcome..
..,

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