Calculation of effective capital

Hii,

For the purpose of calculating effective capital ( for calculating managerial remunerstion) , following formula is used:

Add : Paid up capital

         Security Premium  Account

         Reserve and Surplous

         Loan

My doubt is that Security premium is part of reserve and surplous, so while mentioning the value of reserve and surplous do we need to again put the value of security premium or after deducting security premium.

For Ex:

Security Premium Account 

Opening Balance                               88720000

Add : Security Premium Credited    150000000

Closing Balance                                 238720000

 

Profit & Loss Account

As per last Balance Sheet                 (80300)

Closing Balance                                (80300)

Reserve & Surplous                           238639700

 

Now what sholud be the amount to be shown in security premium account and in Reserve & Surplous, for calculating Effective Capital ??

 

 

Replies (1)

Seurties Premium A/c has to be considered only once.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
23 July 2026
Semi qualified CA

Garg Bros & Associate CA

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 16 July 2026
CA Article

Pipara & Co. LLP.

Mumbai

CA Inter

View Details
Company
23 July 2026
Senior Accountant

Felicity Adobe LLP

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 15 July 2026
CA Articles

Kinjal H Shah & Co.

Mumbai

CA Foundation

View Details
Company
29 July 2026
ACCOUNTANT

ONESTEP GST SOLUTION

New Delhi

B.Com

View Details
Company
ARTICLESHIP 16 July 2026
Article Assistant

G A R U D & Associates

New Delhi

CA Inter

View Details