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Balance Sheet without paid up capital

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anil jain

Partner

1072 Points Posted on 11 June 2021

A Private Limited Company of my client incorporated on 30.10.2020.

All Subscribers to memorandum subscribed their portion of capital only on 05.05.2021.

I have to provide consultation to them to prepare Balance Sheet as on 31.03.2020.

Since there is no paid up capital as on 31.03.2021, means Balance Sheet without paid up capital.

will there be any intricacy or Repercussion of the same?

or it is normal feature.

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Quick Summary

This discussion addresses the accounting treatment for a Balance Sheet when a company has subscribed capital but no paid-up capital as of the reporting date. It explores whether it's normal to present a Balance Sheet without paid-up capital and discusses the correct placement of subscribed capital on the balance sheet, even before funds are received.