Cash accounting in pvt. ltd co.

Accounting Entries 224 views 2 replies

Tarun Gupta

3 Points Posted on 23 January 2018

If a Pvt. Ltd. Co. has a cash shortfall of a temporary nature and a director/s put in the required amount. How is it to be accounted?

If ABC Pvt. Ltd has a shortfall of Rs. 1,50,000 and a director X puts in the amount to tide over the difficulty, how is it to be accounted if;

a) the amount has been repaid during the year; and

b) The amount being taken at the end of the year and is carried over to th enext fiscal?

Please give me a detailed answer for B/S treatment and disclosure norms, if any.

Thanks in anticipation,

Yours sincerely,

TARUN GUPTA

Replies (2)

Avinash Jeevan Dsouza

Accounts Officer & In charge

3308 Points Posted on 23 January 2018

There is a provision to take a loan from directly in pvt ltd company. There is no need to return at the time of closure of accounting books. Treat it as loan from director. Please note these all tranction should be made through bank payment. Cash transaction is disallowed. Director can claim the interest on the same amount but it is not madator to pay the interest.

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anil jain

Partner

1072 Points Posted on 23 January 2018

u/s 188 (1)(d) of the companies act 2013 it is a related party transaction.

u/s 188(2) it is required to be disclosed in Board's Report.

As per proviso to rule 2(1)(c)(viii) of Companies (Acceptance of deposit) Rules 2014, compny is required to obtain a declaration form the related director that the amount is not being given out of funds acquired by borrowing or accepting loan or deposit from others.