In this article we will discuss about the accounting treatment for the issue of shares at par, explained with the help of suitable illustrations. When a shareholder is required to pay an amount equal to the face value or nominal value of shares, then such issue of shares is at par. To have a complete accounting records for the sums [...]
In this article we will discuss about the accounting treatment for liquidator’s statement of affairs, explained with the help of a suitable illustrations. Statement of Affairs to be made to Official Liquidator: As per Section 454 of the Companies Act, the Officers or Directors of the Company under winding up order, must make out and submit, within 21 days of [...]
The following points, in respect of dividends, should be kept in mind while preparing consolidated balance sheet: (i) Proposed Dividend: When a subsidiary company proposed the dividend, it debits its Profit and Loss Appropriation Account and credits Proposed Dividend Account. Holding Company's share of such dividend will appear with the Profit and Loss Account balance in the consolidated Balance Sheet [...]