Share at discount

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Querist : Anonymous (Querist)
18 June 2013 Co. is Pvt ltd and incorporated in April 2013 and want to issue share at discount by 80% (i.e.100 -80 ) issue at 20 so please guide the procedure and chance of sanctioneing discount. If you provide accounting treatment will help

18 June 2013 Just pass board resolution in this regard and allot the shares at discount.

18 June 2013 The accounting entries shall be as under:

Bank Account Dr 80
Share Discount A/c Dr 20
To Share Capital 100
(being shares allotted on discount)



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