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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)
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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