25 May 2012
i am on audit of a pvt. ltd company where by the company had issued 3000 shares of face value 10 totaling Rs.30,000 the person who bought the share was taken in as a director ! he paid in total 24lakhs for these shares !!! shall it be accounted as below : ??? rs 30000 - share capital rs 23,70,000 - sec. premium ? and is there a need 2 deposit the premium amount in some certain separate bank ac ?? or can the company use the premium on day to day business ???
if not,what shall be the accounting entry for these shares ? show shall i audit the above transactions ???????????
CAclubindia
