Pass Relevant entries

A company has incresed its authorised share capital from ₹500000 to ₹1000000. IT has incured ₹25000 @ ROC fees.pass relevant entries
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Quick Summary
This discussion explains the correct accounting entries for a company that has increased its authorised share capital. It details the journal entries for crediting the authorised capital account, receiving share application and allotment money, transferring funds to equity share capital, and recording the payment of ROC fees.

Credit authorised capital account 50,000

Debit ROC fee 

Capital has been increased , so share application and allotment money received .

Bank A/c Dr 500000/-
To share application
allotment money A/c Cr 500000/
( fresh issue of additional capital , money received)

Share application allotment A/c Dr 500000
To Equity share capital A/c Cr. 500000/-
( Money transfer to capital )

ROC fees paid

ROC fees A/c Dr 25000/-
To Bank A/c Cr. 25000/-
( ROC fees paid to ROC)

This is correct method. Since you work on ERP, I gave a concise version. Thanks

Thank you prasad ji and yasaswi

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