The following article will guide you about how to Prepare a Statutory Report in Joint Stock Company.
Preparation of Statutory Report:
A new public company has to hold a statutory meeting soon after it receives its certificate for commencement of business and it has to send to its members a report called the statutory report.
From the accounts point of view, the report has to contain the following information:
(a) Regarding shares issued together with their classes and consideration, and
(b) Regarding the amounts received and disbursed by the company, grouped under prominent headings.
It has been seen how a new company receives cash by the issue of shares and debentures. These will be the two prominent sources from which cash is received.
Payments by a new company are made for preliminary expenses (which may be treated as expenses for the formation of the company, e.g., preparation and printing of the Memorandum and the Articles, expenses for obtaining the certificate of commencement of business, etc.), underwriting commission, brokerage, acquisition of assets and for meeting day-to-day expenses.
The form of the Statutory Report is given below: