Securities premium account
This query is : Resolved
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 ???????????
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 ???????????
26 May 2012
Yes, 30000 share cap, 237000 securities premium.
No need of seperate deposits..
Further company can not use premium for day to day business as it is not allowed u/s 78 of companies act.
No need of seperate deposits..
Further company can not use premium for day to day business as it is not allowed u/s 78 of companies act.
Message likes :
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26 May 2012
well the co has spent the amount already so what shall be my line of action now ??
more if the co. cant use that amt than what shall be done to that amount
more if the co. cant use that amt than what shall be done to that amount
23 July 2025
https://docs.google.com/document/d/1W6kji9QpRov5qaXlkkerUtblV-6CmTax-hVX8rXSQKc/edit?usp=sharing
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