Dear
Please Clarify the issue regarding accounting treatment in books of accounts
As a Promoter Loans received from third parties on behalf of proposed Company and directly given for fixed assets purchase to the Vendor from the promoter account (Pre Incorporation period). After Incorporation of Company, Company wants to show third parties names in its books as Unsecured loans by passing Journal entry ( with resolution), Whether this transaction is violation to the Accounting principles or to any Act. ?
CAclubindia
