Company audit balance sheet

Dear Team
XYZ pvt ltd was incorporated on sep 2020 and bank account was open in dec 2021 and subscripttion amount was received then in dec 21.

in the FY 20-21 BALANCE SHEET
HOW WILL WE SHOW THE SHARE CAPITAL in case no other single transaction was done?

will both asset and liability side would be zero?
Replies (9)
Quick Summary
This discussion clarifies how to present share capital on a company's balance sheet for FY 20-21 when incorporation occurred in Sep 2020 but the bank account and initial transactions only happened in Dec 2021. It explains that the balance sheet cannot show zero share capital, as a company requires minimum paid-up capital upon incorporation. Preliminary expenses should be shown as deferred assets, and share capital and bank accounts must be reflected on the liability and asset sides respectively, even if initial compliance activities were delayed.

Fresh infusion of promoters capital.
It's quite logical.
Any preliminary expenses incurred during the incorporation of the company that you have to write off in the coming years , same you have to show on the Deffered Asset , Asset side , Preliminary expenses not written off . ( check IND AS)
In addition to above ,Show Share capital on liability side and Bank account on the Asset side of the Balance sheet .
Dear All,
there was no bank account or transaction done in FY 20-21.
BANK ACCOUNT or first transaction was done in FY 21-22.
Ho, Sorry I thought transactions took place in 20-21.

As per companies act 2013,  all compliance i,e oping of Bank account , issue of shares , first AGM  must  be done within the stipulated  period  form  the date of   Incorporation  of the Company .

It can't be zero , A company can't be formed without minimum paidup share capital
A company can be formed with minimum share capital.
With zero capital , company formation going into lapses
Same is I explaining , you have to do all compliance , like Minimum Share capital , Bank account immediately after Incorporation of the company , within stipulated time period , you can not keep it Zero till the year end .

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register