Excess amount received in share capital.

Share capital was 49500. Foreign director send 550 gbp and when it converted in INR amount it became 49691. what to do with excess Rs191..
Replies (4)
Quick Summary
This discussion addresses how to handle a small excess amount received in share capital, specifically INR 191 due to currency conversion. It explores options like adjusting the entry or treating it as exchange gain/loss, noting that such excess is generally not taxable. The advice leans towards crediting it to profit and loss as revenue income, especially if the purchase and payment dates differ.

We cant do anything if it is an error of original entry. You cant pass a double entry because it will impact another account. So change the number. But if it is recorded in two accounts like

Bank dr 49500

To share capital cr  49500

Then 

Add 

Bank dr 191

Share capital cr 191

Excess amount received as share capital is not taxable.
Practically,I would advise to use Exchange gain loss and credit to profit and loss and pay tax thereon as revenue income.

Loss gain arises when payment date is different from purchase date. If purchase and payment made the same day, no loss or gain

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