accounting effect for stamp duty payment for Pvt. Ltd. Co.

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Hello everyone,

 

I want to ask regarding accounting of stamp duty payment for Pvt. Ltd. Co. For making stamp duty payment for  AOA & MOA of Pvt. Ltd. Co., we drawn Pay orders ithro one of the proprietary concern whose prop is one of the promoter of new Pvt. Ltd. Co.

Then what effect is to be given for this transaction in books of 1) Pvt. Ltd. 2) Prop. Concern 3) in indiv. Bal. sheet of prop.

 

For Pvt. Ltd we’ve applied for PAN & we’ll get it within 3-4 days & purchase & sale transaction will get started from April 2010 as we've to apply all other registrations with different depts.,  then what about the income tax return for F.Y.09-10. Whether the same exp will have to be booked under preliminary/ formation exp of co in pvt. ltd. &  this exp will be c/fd to next year ? what is the correct accounting treatment for this.

 

Can we show it as investment in indivi. bal. sheet of that prop.( who is the promoter for pvt ltd. ) ? what will be the accounting entries for the same all above three books of accounts.

Pls. reply

thanks in advance

Replies (3)
In the books of newly forms Pvt. Ltd. all these expenses can be booked as preliminary expenses and shown in the balance sheet. Also in the books of proprietory firm it can be shown as an investment. Books of company: Preliminary Expenses A/c Dr. to Equity Share Capital A/c Books of prop. firm: Investment in ...Pvt. Ltd A/c Dr. to Bank A/c

nice reply...thank u sir

what is the accounting treatment of stamp duty & registration charges paid in respect of increase the limit  authorised share capital of private limited company ? whether it is revenue expenditure or capital expenditure

Please tell me urgent


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