Consignment account is a combination of— The value of abnormal loss is calculated like
and profit and loss account.
loss is not recoverable from insurance company.
Goods dispatched by a manufacturer or whole seller to an agent for the purpose of sale
Delcredre commission is normally calculated on
Consignee account is of the nature of a
Consignor account is of the nature of a
sales.
account.
account.
Consignment account is of the nature of a account.
Goods sent on consignment account is a — account.
The consignee — be treated as consignor's debtor for the goods rec
consignment.
Stock on consignment appears in the balance sheet of ,
account will be debited in oaccount will be c
The bill which is drawn by consignee is known as bill.
For goods sent on consignment to consignee
hook.
For goods sent on consignment to consignee consignor's book.
For expenses paid by consignor —
account will be debited and
account will credited in consignor's book.
account will be ci
On payment of advance by consignee to consignor
—: account will be debited in consignee's book.
account will be c
On receiving advance from consignee by consignor
account will be credited in consignor's book.
On the acceptance of bill of exchange in favour of consignor by consignee, consignor abe and bill payable account will be in consignee's book.
accc
On receiving the bill of exchange by consignor from consignee
debited and account will be credited in consignor's book.
account will be de
On payment of expenses by consignee for consignor
account will be in consignee's book.
On payment of expenses by consignee for consignor
account will be
account will be credited in consignor's book.
acc<
account will be
When goods are sold by consignee for cash
account will be credited in consignee's book. •
When goods are sold for cash by consignee account will be
account will be credited in consignor's book.
Tuesday, March 31, 2009
IMPORTANT TERMS AND CONCEPTS:
(a) PROFORMA INVOICE:
Invoice is the forwarding letter sent along with the goods containing particulars ; item; number (quantity or weight or measurement) and the price. As the consignmen consignee is not the buyer therefore the 'forwarding letter* sent along with the consigi for his information. This forwarding letter is a substitute of invoice but it is drawn i invoice and termed a "Performa Invoice".
(b) DELCREDERE COMMISSION:
When such commission is paid to the consignee, the loss on account of ba consignee. This commission will save consignor from loss of bad debts only. If any customer is not in the nature of bad debt (Non-payment due to credit unworthiness ol will be borne by consignor, even if delcredere commission is being paid to consignee.
(C) EXPENSES BORNE BY CONSIGNEE:
If as per agreement, any expense is borne by consignee, or any loss occurs i consignee, such expense or loss will not be debited in consignment account by com will be debited in the profit and loss account of the consignee.
(d) DISCOUNT PAID ON BILLS RECEIVABLE DISCOUNTED BY CONSIGThere are two alternative treatments for this item:
(i) When discount is treated as "consignment expense" it is debited to consig(ii) When discount is treated as "financial charge", it is debited to profit;
(e) GOODS INVOICED AT A PRICE ABOVE COST:
If consignor sends Performa invoice to consignee at a price above cost, profit the basis of cost. Therefore, adjustment shall be made for excess of invoice price ovc value of "goods sent on consignment" and "consignment stock".
(a) PROFORMA INVOICE:
Invoice is the forwarding letter sent along with the goods containing particulars ; item; number (quantity or weight or measurement) and the price. As the consignmen consignee is not the buyer therefore the 'forwarding letter* sent along with the consigi for his information. This forwarding letter is a substitute of invoice but it is drawn i invoice and termed a "Performa Invoice".
(b) DELCREDERE COMMISSION:
When such commission is paid to the consignee, the loss on account of ba consignee. This commission will save consignor from loss of bad debts only. If any customer is not in the nature of bad debt (Non-payment due to credit unworthiness ol will be borne by consignor, even if delcredere commission is being paid to consignee.
(C) EXPENSES BORNE BY CONSIGNEE:
If as per agreement, any expense is borne by consignee, or any loss occurs i consignee, such expense or loss will not be debited in consignment account by com will be debited in the profit and loss account of the consignee.
(d) DISCOUNT PAID ON BILLS RECEIVABLE DISCOUNTED BY CONSIGThere are two alternative treatments for this item:
(i) When discount is treated as "consignment expense" it is debited to consig(ii) When discount is treated as "financial charge", it is debited to profit;
(e) GOODS INVOICED AT A PRICE ABOVE COST:
If consignor sends Performa invoice to consignee at a price above cost, profit the basis of cost. Therefore, adjustment shall be made for excess of invoice price ovc value of "goods sent on consignment" and "consignment stock".
The contents of the memorandum of association as required by Sections 16, 17 and 18 of the mpanies. Ordinance include the following clauses (1) Name clause (2) situation clause (3) object clause liability clause (5) capital clause and (6) subscription clause.
ARTICLES OF ASSOCIATION:
The articles of association is the second important document in the incorporation of a company. It is 1 document which contains the rules and regulations for the internal management of the company. The icles of association embody the power of directors and other officers of the company, the right of voting the shareholders, the procedure of holding meeting, the manner of transferring the shares, the procedure issuing the shares debenture, the payment of dividends, maintenance of accounts, alteration of capital, ading up etc. etc.
The articles of association is subordinate to the memorandum. It cannot include any power which is >hibited or excluded by the Memorandum and the Companies Ordinance.
According to Section 26 of the Companies Ordinance, a company limited by shares can choose to opt table 'A' in the First Schedule which contains model rules and regulations.
The articles of association shall be printed, divided into paragraphs, numbered consecutively, signed each subscriber and dated.
The articles of association subject to the provisions of Ordinance can be altered or added by special solution.
PROSPECTUS:
It is a valuable document issued by the company for raising of the capital.
Prospectus has been defined as "any document described or issued as prospectus and includes any-bce, circular, advertisement or other communication, inviting offers from the public fcr the subscription purchase of any shares".
The main object of prospectus is to arouse the interest of the investors in the proposed company and induce them to invest in its shares and bonds etc.
The prospectus gives the details of die amount issued, the rights attached to the shares the property rchased; information about directors, auditors, bankers etc.
SHARE CAPITAL OF A JOINT STOCK COMPANY
In today's world large scale operations of a company call for a large amount of capital, The total cunt of capital is divided into smaller units. These units are called shares. Each share is assigned a iue. This value is called the par value of the share. The total capital is thus divided into a large number shares. This pool is, therefore, called share capital. This scheme of raising capital through shares (i) Ips the company to raise a large amount, and (ii) helps a larger section of the investment population to Befit from the operations of large scale business concerns.
A company has to fulfil certain legal requirements if, in later yeas, it decides to either increase or crease its share capital. And it has to state its maximum capital in the memorandum. To minimize the ances of undergoing legal formalities in later years, therefore, it is customary to state a reasonable lount as the maximum capital. This amount is incorporated in the memorandum of association and is own as the authorized capital, nominal capital, or registered capital of the company. Various terms used relation to share capital are explained in the following paragraphs.
ARTICLES OF ASSOCIATION:
The articles of association is the second important document in the incorporation of a company. It is 1 document which contains the rules and regulations for the internal management of the company. The icles of association embody the power of directors and other officers of the company, the right of voting the shareholders, the procedure of holding meeting, the manner of transferring the shares, the procedure issuing the shares debenture, the payment of dividends, maintenance of accounts, alteration of capital, ading up etc. etc.
The articles of association is subordinate to the memorandum. It cannot include any power which is >hibited or excluded by the Memorandum and the Companies Ordinance.
According to Section 26 of the Companies Ordinance, a company limited by shares can choose to opt table 'A' in the First Schedule which contains model rules and regulations.
The articles of association shall be printed, divided into paragraphs, numbered consecutively, signed each subscriber and dated.
The articles of association subject to the provisions of Ordinance can be altered or added by special solution.
PROSPECTUS:
It is a valuable document issued by the company for raising of the capital.
Prospectus has been defined as "any document described or issued as prospectus and includes any-bce, circular, advertisement or other communication, inviting offers from the public fcr the subscription purchase of any shares".
The main object of prospectus is to arouse the interest of the investors in the proposed company and induce them to invest in its shares and bonds etc.
The prospectus gives the details of die amount issued, the rights attached to the shares the property rchased; information about directors, auditors, bankers etc.
SHARE CAPITAL OF A JOINT STOCK COMPANY
In today's world large scale operations of a company call for a large amount of capital, The total cunt of capital is divided into smaller units. These units are called shares. Each share is assigned a iue. This value is called the par value of the share. The total capital is thus divided into a large number shares. This pool is, therefore, called share capital. This scheme of raising capital through shares (i) Ips the company to raise a large amount, and (ii) helps a larger section of the investment population to Befit from the operations of large scale business concerns.
A company has to fulfil certain legal requirements if, in later yeas, it decides to either increase or crease its share capital. And it has to state its maximum capital in the memorandum. To minimize the ances of undergoing legal formalities in later years, therefore, it is customary to state a reasonable lount as the maximum capital. This amount is incorporated in the memorandum of association and is own as the authorized capital, nominal capital, or registered capital of the company. Various terms used relation to share capital are explained in the following paragraphs.
Consigment
llauf & Co. of Lahore consigned to Farooq of Gujrat, 60 boxes of toys at Rs. 400
The consignor paid carriage and insurance of Rs. 2,000. Farooq sent Rs. 10,0< payment. Rauf & Co. received an Account Sales from Farooq containing particulars:
Gross sales proceeds are Rs. 34,000.
Transportation and warehousing charges are Rs. 1,500.
Commission at 15 % on gross proceeds.
Rauf & Co. received bank remittance for the balance due from Farooq on the Pass the Journal entries and the necessary Ledger Accounts in the books of < consignee.
Ans: [Consignment Profit Rs. 1400]
2. Karim & Co. of Karachi sent on consignment to Salman & Sons, of Lahore 60 cgoods costing Rs. 175 per case. Expenses incurred by the consignor at Karachi ar
Freight Rs. 275; Insurance Rs. 55; Loading Charges Rs. 20. Karim & Co. Draw on Salman & Sons. 2 months bill at sight for Rs. 7,000 wl accepts. The charges paid by Salman & Sons, at Lahore were: unloading ch storage Rs. 85; Insurance Rs. 15. Commission is payable to Salman & Sons, at 2 in addition to Ij % delcredere commission.
The consignee sells all the cases @ Rs. 240 per case.
Pass the journal entries and consignment account in the books of Karim & Co.
Ans: [Profit on Consignment Rs. 2916]
3. Global Co. of Karachi sent 1,000 cases of Homeopathic medicines to ZahiRawalpindi at Rs. 100 per case. Expenses on the Consignment incurred byamounted to Rs. 3,000. Zahid & Bros, in Rawalpindi were working as delcredencommission is 5 % ; Delcredere Commission is 7 1/2 %.
Exactly after six months an 'Account Sales' was received by Global Co. giving information:
Sale proceeds of 750 cases Rs. 1,50,000
Stock of unsold goods in hand, 250 cases
Consignee's expenses amounted to Rs. 1,200
A Bank draft for Rs. 1,00,000 was sent by Zahid Bros, along with the accoi
You are asked to give the necessary entries in the books of the consignor to rec transactions.
Ai-.: [Profit on Consignment Rs. 52,800]
The consignor paid carriage and insurance of Rs. 2,000. Farooq sent Rs. 10,0< payment. Rauf & Co. received an Account Sales from Farooq containing particulars:
Gross sales proceeds are Rs. 34,000.
Transportation and warehousing charges are Rs. 1,500.
Commission at 15 % on gross proceeds.
Rauf & Co. received bank remittance for the balance due from Farooq on the Pass the Journal entries and the necessary Ledger Accounts in the books of < consignee.
Ans: [Consignment Profit Rs. 1400]
2. Karim & Co. of Karachi sent on consignment to Salman & Sons, of Lahore 60 cgoods costing Rs. 175 per case. Expenses incurred by the consignor at Karachi ar
Freight Rs. 275; Insurance Rs. 55; Loading Charges Rs. 20. Karim & Co. Draw on Salman & Sons. 2 months bill at sight for Rs. 7,000 wl accepts. The charges paid by Salman & Sons, at Lahore were: unloading ch storage Rs. 85; Insurance Rs. 15. Commission is payable to Salman & Sons, at 2 in addition to Ij % delcredere commission.
The consignee sells all the cases @ Rs. 240 per case.
Pass the journal entries and consignment account in the books of Karim & Co.
Ans: [Profit on Consignment Rs. 2916]
3. Global Co. of Karachi sent 1,000 cases of Homeopathic medicines to ZahiRawalpindi at Rs. 100 per case. Expenses on the Consignment incurred byamounted to Rs. 3,000. Zahid & Bros, in Rawalpindi were working as delcredencommission is 5 % ; Delcredere Commission is 7 1/2 %.
Exactly after six months an 'Account Sales' was received by Global Co. giving information:
Sale proceeds of 750 cases Rs. 1,50,000
Stock of unsold goods in hand, 250 cases
Consignee's expenses amounted to Rs. 1,200
A Bank draft for Rs. 1,00,000 was sent by Zahid Bros, along with the accoi
You are asked to give the necessary entries in the books of the consignor to rec transactions.
Ai-.: [Profit on Consignment Rs. 52,800]
Monday, March 30, 2009
Definitions 100% work
2. Only cash transactions are recorded here.
3. The portion of income or expenditure whichhas been received or paid in cash this year,is recorded here.
4. Transactions involving cash receipts arerecorded on Debit side and those involvingcash payments are recorded on Credit side.
5. Transactions—both capital and revenue—are recorded here.
6. Its balance can never be credit.
7. Its .balance is carried over to Receipts &Payments Account of the next year.
8. This account shows opening balance exceptin the first year.
9. The closing balance of this accountrepresent in the first year.
It is not confined to cash transactions onH, i.e. non-cash transactions are also included in it.
The whole amount of income oil expenditure—whether received or paid iij cash or not—is recorded in it.
All expenditures are recorded on Debit side and all incomes on Credit side.
5. Only revenue transactions are recorded here.
6. Its balance may be either debit or credit.
7. Its balance is transferred to Capital Fund.
8. It has no opening balance.
9. Its closing balance represents either surplus Ior deficit. Credit balance indicates surplus, jwhile debit balance indicates deficit.
10. This account records transactions relating topast, present and future years. Hence, noadjustment is made for pre-received oraccrued incomes and pre-paid oroutstanding expenses. In a word, it isprepared on cash basis.
11. It is, in fact, an abridged Cash Book.
10. Transactions relating to the current yearonly are recorded in it. Hence, adjustmentsare invariably made for pre-received oraccrued incomes and pre-paid oroutstanding expenses. In a word, it mprepared on Accrual basis.*
11. It is, infect, similar to Profit & Loss Accountof a profit-seeking business concern.
12. It is outside the Double Entry system.
13. It is not accompanied by Balance Sheet.
14. Its preparation is not compulsory.
12. It is within the Double Entry system.
13. It is accompanied by Balance SheetIt is compulsory. It must be prepared iiorder to ascertain the true result of tconcern
3. The portion of income or expenditure whichhas been received or paid in cash this year,is recorded here.
4. Transactions involving cash receipts arerecorded on Debit side and those involvingcash payments are recorded on Credit side.
5. Transactions—both capital and revenue—are recorded here.
6. Its balance can never be credit.
7. Its .balance is carried over to Receipts &Payments Account of the next year.
8. This account shows opening balance exceptin the first year.
9. The closing balance of this accountrepresent in the first year.
It is not confined to cash transactions onH, i.e. non-cash transactions are also included in it.
The whole amount of income oil expenditure—whether received or paid iij cash or not—is recorded in it.
All expenditures are recorded on Debit side and all incomes on Credit side.
5. Only revenue transactions are recorded here.
6. Its balance may be either debit or credit.
7. Its balance is transferred to Capital Fund.
8. It has no opening balance.
9. Its closing balance represents either surplus Ior deficit. Credit balance indicates surplus, jwhile debit balance indicates deficit.
10. This account records transactions relating topast, present and future years. Hence, noadjustment is made for pre-received oraccrued incomes and pre-paid oroutstanding expenses. In a word, it isprepared on cash basis.
11. It is, in fact, an abridged Cash Book.
10. Transactions relating to the current yearonly are recorded in it. Hence, adjustmentsare invariably made for pre-received oraccrued incomes and pre-paid oroutstanding expenses. In a word, it mprepared on Accrual basis.*
11. It is, infect, similar to Profit & Loss Accountof a profit-seeking business concern.
12. It is outside the Double Entry system.
13. It is not accompanied by Balance Sheet.
14. Its preparation is not compulsory.
12. It is within the Double Entry system.
13. It is accompanied by Balance SheetIt is compulsory. It must be prepared iiorder to ascertain the true result of tconcern
Solved problem
On 1st July 2005 P & Co. sends 300 cases of medicines to Teeshan on consignment'basin The cost of each case was Rs. 1,000. P &Ctf. incurred the following expenses on the consignment: Rs. 750 on railway freight and Rs. 450 on insurance.
200 cases were sold by Zeeshan uniformly at Rs. 2000 per case. The expenses of Zeeshan amounted to Rs. 1,200. He sent an account sale on 31st December 2005 which revealed that he charged 5 % as ordinary commission and 10 % as delcreder commission. He sent a bank draft for Rs. 90,000.
You are required to prepare Consignment Account, Zeeshan's Account and goods sent on consignment Account in the books of P & Co.
ins: [Profit on consignment Rs. 1,38,000}
On 1st March 2005 Karini Bux consigned cloth to the value of Rs. 6,50,000 at cost to Afzal & Sons, his agent in Multan. Who accepted a 3 months draft for Its.7.80,000. The draft was discounted at a cost of Rs. 13,000.
Karim Bux paid Rs. 35,000 as freight and Rs. 6,500 as insurance on 30th September 2005, Afzal & Sons notified Karim Bux that 4/5th of the goods had been sold for Rs. 8,24,000 and that the selling expenses were Rs. 12,100.
Afzal & Sons' were entitled to a commission at the rate of 10 % on sales. Show these transactions in the necessary ledgers of both the parties.
: fConsignment Profit Rs. 176,300]
On 1st July 2005 Mr. M in Sialkot consigned to Mr. R in Swat, goods to the value of Rs. 60,000, paying freight charges Rs. 5,000 and draws a bill on Mr. R for Rs. 30,000.3/4the of this consignment was sold by Mr. R for Rs. 70,000 and expenses Rs. 6,000 were incurred. Mr. R is also entitled to a commission of 6 % on sales. Mr. R remitted to Mr. M, the net amount held for his account by means of a sight draft. Show the ledger accounts in the books of Mr. M.
mms. [Profit on Consignment Rs. 11,050]
On 1st January 2005 Mr. C of Lahore consigned to D of Sargodha goods for sale. Mr. D Is entitled to a commission of 5%. Goods costing Rs. 24,000 were consigned to Sargodha . The expenses of consignment amounted to Rs. 2,000. On 31st March 2005 an Account Sales was received from Mr. D showing that he had affected sates of Rs. 24,000 in respect of 3/4 of the quantity of goods consigned to him. The expenses incurred by him amounted to Rs. 1,200. Mr. D remitted the amount due by a bank draft
Prepare consignment account, goods sent on consignment account and Mr. D's account in the Books of Mr. C.
[Profit on Consignment Rs. 2,100]
200 cases were sold by Zeeshan uniformly at Rs. 2000 per case. The expenses of Zeeshan amounted to Rs. 1,200. He sent an account sale on 31st December 2005 which revealed that he charged 5 % as ordinary commission and 10 % as delcreder commission. He sent a bank draft for Rs. 90,000.
You are required to prepare Consignment Account, Zeeshan's Account and goods sent on consignment Account in the books of P & Co.
ins: [Profit on consignment Rs. 1,38,000}
On 1st March 2005 Karini Bux consigned cloth to the value of Rs. 6,50,000 at cost to Afzal & Sons, his agent in Multan. Who accepted a 3 months draft for Its.7.80,000. The draft was discounted at a cost of Rs. 13,000.
Karim Bux paid Rs. 35,000 as freight and Rs. 6,500 as insurance on 30th September 2005, Afzal & Sons notified Karim Bux that 4/5th of the goods had been sold for Rs. 8,24,000 and that the selling expenses were Rs. 12,100.
Afzal & Sons' were entitled to a commission at the rate of 10 % on sales. Show these transactions in the necessary ledgers of both the parties.
: fConsignment Profit Rs. 176,300]
On 1st July 2005 Mr. M in Sialkot consigned to Mr. R in Swat, goods to the value of Rs. 60,000, paying freight charges Rs. 5,000 and draws a bill on Mr. R for Rs. 30,000.3/4the of this consignment was sold by Mr. R for Rs. 70,000 and expenses Rs. 6,000 were incurred. Mr. R is also entitled to a commission of 6 % on sales. Mr. R remitted to Mr. M, the net amount held for his account by means of a sight draft. Show the ledger accounts in the books of Mr. M.
mms. [Profit on Consignment Rs. 11,050]
On 1st January 2005 Mr. C of Lahore consigned to D of Sargodha goods for sale. Mr. D Is entitled to a commission of 5%. Goods costing Rs. 24,000 were consigned to Sargodha . The expenses of consignment amounted to Rs. 2,000. On 31st March 2005 an Account Sales was received from Mr. D showing that he had affected sates of Rs. 24,000 in respect of 3/4 of the quantity of goods consigned to him. The expenses incurred by him amounted to Rs. 1,200. Mr. D remitted the amount due by a bank draft
Prepare consignment account, goods sent on consignment account and Mr. D's account in the Books of Mr. C.
[Profit on Consignment Rs. 2,100]
Accounting
COMPANY LIMITED BY GUARANTEE. SECTION 15(2) (b)
It is the company in which the liability of its members is limited by the memorandum of association such amount as the members may respectively undertake to contribute to the assets of the company in event of its being wound up. This type of company is formed mostly when work is of non-profit nature.
UNLIMITED COMPANY:
An unlimited company is that in which the liability of its members is unlimited. Every member of company is personally liable to the full extent of his personal assets for all the debts of the company lile he was a member. The unlimited companies due to great risk do not exist here.
ASSOCIATION NOT FOR PROFIT:
Association not for profit is registered under Section 42 of the Companies Ordinance. It enjoys all privileges of a limited company without using the word limited or private limited. This association is ly formed for the promotion of commerce, art, religion, charity etc. The Federal Government grants licence for the association.
)TE:
In this chapter, the whole discussion is about the accounting of Public Limited Companies. IMATION OF A PUBLIC LIMITED COMPANY:
The establishment of Public Limited Company is not an easy job. A number of steps need to be for the formation of a public company. However, these are split up into three stages (1) Promotion (2) joration and (3) Commencement of business.
PROMOTION OF A COMPANY:
The important steps in the promotion of a company are (1) Discovery of business idea (2) vestigation of the business project (3) Verification of the results of investigation. (4) Chalking out a lite course of action for establishing a company (5) Financing of the business,
INCORPORATION OF A COMPANY:
The promoters have to prepare and file a number of documents with the registrar for the ' corporation of a company. These documents are as under:
The memorandum of association.
The articles of association.
Notice of the address at which the registered office of the company will be situated.
A statutory declaration by the secretary or a chartered accountant that all the provisions of tlieCompanies Ordinance with regard to registration have been fulfilled.
Original copies of the receipted challans in respect of payment of duty on share capital andthe prescribed filing fee.
The above documents when submitted must be accompanied with requisite filing fee. The registrar ceipt of all the documents will scrutinize them If he is satisfied that the requirements of law have been met with, he will register the company on the Register of Companies and issue a certificate of jration. The certificate of incorporation is a proof of the fact that all the requirements of the u'es Ordinance have been complied with.
It is the company in which the liability of its members is limited by the memorandum of association such amount as the members may respectively undertake to contribute to the assets of the company in event of its being wound up. This type of company is formed mostly when work is of non-profit nature.
UNLIMITED COMPANY:
An unlimited company is that in which the liability of its members is unlimited. Every member of company is personally liable to the full extent of his personal assets for all the debts of the company lile he was a member. The unlimited companies due to great risk do not exist here.
ASSOCIATION NOT FOR PROFIT:
Association not for profit is registered under Section 42 of the Companies Ordinance. It enjoys all privileges of a limited company without using the word limited or private limited. This association is ly formed for the promotion of commerce, art, religion, charity etc. The Federal Government grants licence for the association.
)TE:
In this chapter, the whole discussion is about the accounting of Public Limited Companies. IMATION OF A PUBLIC LIMITED COMPANY:
The establishment of Public Limited Company is not an easy job. A number of steps need to be for the formation of a public company. However, these are split up into three stages (1) Promotion (2) joration and (3) Commencement of business.
PROMOTION OF A COMPANY:
The important steps in the promotion of a company are (1) Discovery of business idea (2) vestigation of the business project (3) Verification of the results of investigation. (4) Chalking out a lite course of action for establishing a company (5) Financing of the business,
INCORPORATION OF A COMPANY:
The promoters have to prepare and file a number of documents with the registrar for the ' corporation of a company. These documents are as under:
The memorandum of association.
The articles of association.
Notice of the address at which the registered office of the company will be situated.
A statutory declaration by the secretary or a chartered accountant that all the provisions of tlieCompanies Ordinance with regard to registration have been fulfilled.
Original copies of the receipted challans in respect of payment of duty on share capital andthe prescribed filing fee.
The above documents when submitted must be accompanied with requisite filing fee. The registrar ceipt of all the documents will scrutinize them If he is satisfied that the requirements of law have been met with, he will register the company on the Register of Companies and issue a certificate of jration. The certificate of incorporation is a proof of the fact that all the requirements of the u'es Ordinance have been complied with.
Subscribe to:
Posts (Atom)
