Hi,
All friends n ciniors
I wanted a small help in accounting, in a private limited company shares are issued but consideration is to be received in next previous year. so, for the current year in tally softaware how n under which had I will have to show share capital as cash consideration be received in future ?
What is the journal entry I need to make n which account I need to creat under which sub head plz reaply soon I am in great need! Urgent!
when u issue share applications ... the entry is
Share Applications DR
To Share Capital
and only when u get money
Bank A/c DR
to Share Applications
This is the entry ......
Put it under Current asset account... as the money wil be received only next year .. and put share capital in liabilities side.. so balance sheet will tally.. once the money received it wiill be reversed... and the amount received through bank will be shown in the assets side for the next financial year ..
Hi
The Entry will be when u allot it will be Share Application A/C Dr to Share Capital A/C
Once u receive the amount it will be Bank A/C (DR) to Share Appliacation(CR)
Now u will show the Share Application under Current Asset., (As a separte Line Item)
CAclubindia
