banner_ad

Accounting in case of strike off companies

Others 993 views 6 replies
Suppose co. X is going for strike off. All the liabilities have been paid. The balance sheet stands as follow

Equity Share Capital - 100000
Misc exp not written off - 82500
Bank Balance - 15000
The bank balance of 15000 will be utilised for mca striking off charges. how will we close the books of company as well as shareholder? Can the company go for strike off?
Replies (6)

I’m not using strike off accounting precisely, but a general theory suggests that, your balance sheet is wrong. If you have equity 100000, the bank balance also will be the same. If you have cleared off all obligations using bank including strike off charges, then you owe money to shareholders. Use realisation accounting treatment. 

I have not cleared all the obligations the bank balance is 17500. in the question 15000 is incorrect. Misc exp not wriiten off is 82500 whic h makes my a

Then your realising a loss.

I have not cleared all the obligations the bank balance is 17500. in the question 15000 is incorrect. Misc exp not written off is 82500 which makes my asset side total - 100000 . Now if I go for strike off 17500 is kept in bank for mca charges, so my question is my if I go by realisation method then the entries will be
esc a/c ... dr 100000
to realisation a/c 100000

realisation a/c .. dr 100000
to misc exp not written off 82500
to pnl ac (mca charges) 17500

mca charges a/c. 17500
to bank 17500

This is fine because the owner did not realise gain or loss from striking off this company. By the way misc expenses must be on liability side- payables. 

Please low this: https://commerceiets.com/realisation-account/

To be more accurately in determining true profit or loss, the capitalisation must stop and that amount should be taken to debit side of realisation account. (Outstanding expenses)

then you have excess of debit balance, which is a nominal balance- debit all expenses and losses. 

So the owner is at a loss. 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
07 June 2026
Tax Associate

Rajkumar Jain & Co.

Ahmedabad

Graduate (Any)

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details