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Share Transfer

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This query is : Resolved

Life is a Race.....CA FINAL (Querist)
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11 January 2010 Respected Experts,

I wanted to know the accounting treatment and entry to be passed at the time of share transfer by the Private Limited company?

Sudhir Patil

Sudhir Patil (Expert)
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11 January 2010 Account Entry :
Share Capital Cr.
(By New admited Member)
Share Capital Dr.
(By old member who is resigned of the member of share holder)

When share amount is same of the buyer and seller the effect on share capital is NIL. But in narration change the name through account entry.

When seperate entry of buyer is made sahre capital A/c Cr. and Bank/Cash account DR. Means add the new member in company and share captial is incredase. At the time of selling of shares i.e.Sahare capital account Dr. and Bank/Cash A/c Cr. At that time the member is resigned & share capital is debited and name of the member is delited.

Bimal Thacker

Bimal Thacker (Expert)
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11 January 2010 According to me no entry needs in financial books.
You should only make the changes in the register of shareholders.

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