Sec 160 of company act

A/c entries 330 views 1 replies

Can anyone solve my problem

A,B,C,D propose their name for directorship in a company A got 50% B got 35% C got 7% and D got 8% vote

A become director as per sec 160 of comany act 2013 every person who propose their name for directorship should deposit Rs.100000/- which shall be refunded if candidate gets elected as a Director or gets at least 25% of the votes in his favor either by show of hands or by poll. A and B got their money refunded and money of C and D forfetied my question is that what will be accounting treatment of forfeited amount Rs.200000 in which head it 'll appear what will be journal entry

 

Replies (1)

should transfer this amount to general reserve account.


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