my boss (Managing Partner of a firm) promoted along with
his wife a private limited company. he and she spent some
Rs. 75,000/- (approx) for the promotion of the company. i
know that they usually fall under the head of preliminary
expenses. but after receiving the certification of
incorporation of the company how shall i repay them to the
promoters i.e. what is the accounting entry in the books
(initial books of accounts) for the expenditure incurred.
they have kept in hand 5,00,000/- each to meet the expenses
and they were allotted shares of equal to the amount. can i
allot shares for a consideration of cash from and excluding
the preliminary expenses. can i take cash towards the share
application money (being the cash more than Rs. 20,000/-)
as the company has not opened a bank account yet. please
give me the detailed answer with journal entries that can
be entered in tally. thank you.