An investor invested in a start up how to do the accounting entry and under which head?
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How to treat if an investor invest in a Pvt.Ltd.Co.
Replies (2)
Check out what kind f investment it is. FVTPL.? Or investment interest as per business combinations in IndAS. Find out what does the investment hold in that start up eg. investment interest, associate, JV or subsidiary and treat accordingly.
Investors Investment in Star up company will be Income for the company and if Not going to return back . Then accounting entry will be as follows .
Bank A/c Dr
Promoters Investment A/c Cr
( Being amount received towards investment )
Note - Promoters Investment A/c will be under Indirect Income ( Other Income ) under Profit & Loss A/c
This is my opinion you may consult with others also .
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