Hi guys,
Consider this example.....I form a private limited company with my friend, we two as subscribers to the memorandum and also directors. I take VAT registration for the company paying the requisite amount as deposit with National Savings Scheme and pledge it with the department, note that NSCs are only allowable to individuals. So, NSC is taken in the name of either of us. What is the accounting entry ? If the Security Deposit is treated as company's own, which is actually correct....how can I justify my book entries ?
CAclubindia
