Accountancy Forum

Full Version: Payment against issuance of shares.
You're currently viewing a stripped down version of our content. View the full version with proper formatting.

I hope that you all will be fine. I want to share a problem with you. So please guide me and give me your advice.
There is a company SK (Pvt.) Limited incorporated in Pakistan in October 2006. SK is a joint venture of two other companies naming as Zaheer Ahmed Co. (Pvt.) and RR International (Pvt.) Limited. In memorandum of SK (Pvt.) Limited, 20,000 shares were allotted to Zaheer Ahmed Co. and 30,000 were issued to RR International. However, they have not paid amount against issuance of the above shares till June 2007.
During this period, Zaheer Ahmed Co. (Pvt.) Limited incurred different expenses on behalf of SK (Pvt.) Limited. Now the management of SK wants to recover the amount due against issuance of the shares. I have confusion as follows;

Is it possible to adjust the amount payable to Zaheer Ahmed Co. (paid different expenses on behalf of SK Private Limited) against the amount receivable against issuance of shares?

I know that every one is busy because of preparation of Accounts and others activities. However, I shall be thankful if a little time is given to my problem.

Please let me know if the above problem wants more clarification.