Director salary capitalisation

It will be advisable to pay the outstanding amount to the director by cheque and take from cheque towards share application money after following procedure for further issue of shares under Companies Act 2013.

Originally posted by : P C Agrawal
	It will be advisable to pay the outstanding amount to the director by cheque and take from cheque towards share application money after following procedure for further issue of shares under Companies Act 2013.

Thanks for your valuable advise.

But my concern is still open, if the company has liquidity problem and not able to pay by cash/cheque, how we clear this outstanding amount from books by end of FY.

Please suggest any other way or accounting treatment to clear that outstanding without effecting company liquidity(cash/bank).

It is not an issue.  Your accounts person can easily plan it in such a way that both the cheques are passed by the Bank on the same day against each other without funds.  It will be better if accounts of both the director and the company are in the same branch of the Bank.