Internal Company Reconstruction-Accounting Entries For Capital Reduction Where Capital Is Not Represented by Available Assets

August 4th, 2007 Comments off
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Accounting Entries Used In Capital Reduction Where Capital Is Not Represented By Available Assets

(1) Being Amount Written Off From Share Capital Account

Debit

Credit

Share Capital Account

XXX

Capital Reduction Account

XXX

(2) Being Reserves Utilized For Capital Reduction Scheme

Debit

Credit

Reserve Account

XXX

Capital Reduction Account

XXX

(3) Being Amount Written Off From Accumulated Losses

Debit

Credit

Capital Reduction Account

XXX

Profit & Loss Account

XXX

(4) Being Amount Written Off On Assets On Revaluation

Debit

Credit

Capital Reduction Account

XXX

Various Relevant Assets

XXX

(5) Being Surplus Upon Revaluation Of Assets

Debit

Credit

Various Relevant Assets

XXX

Capital Reduction Account

XXX

(6) Being shares issued to settle liabilities

Debit

Credit

Various Relevant Liabilities

XXX

Capital Reduction Account

XXX

(7) Being new shares issued in lieu of preference dividends in arrears

Debit

Credit

Capital Reduction Account

XXX

Share Capital Account

XXX

(8) Being expenses incurred during the Capital Reduction.

Debit

Credit

Capital Reduction Account

XXX

Cash/Bank Account

XXX

(9) Being difference(rounding) re: net credits transferred to Capital Reserve Account.

Debit

Credit

Capital Reduction Account

XXX

Capital Reserve Account

XXX

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Financial Accounting

 
 

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