How to Record "Increase in Authorised Share Capital" Accounting Treatment as per Books as well Income Tax ?
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Quick Summary
This discussion clarifies the accounting treatment for an increase in authorised share capital under ROC regulations. It explains that while an increase in authorised capital itself doesn't require a journal entry, it must be noted in the balance sheet. The conversation also addresses the accounting impact of cash outflows related to share capital, differentiating between expenses and balance sheet entries.
In my opinion there will be no journal entry for the increase in Authorised capital how ever in the balance sheet by way of Note of Share capital one has to show increased Authorised capital. As increase in authorised capital not involve any cash inflow, However if you have issued new share capital then case might be different.