lev012

The question is specifically asked for for Australian taxation .

Trolley

How did you originally record the contributed capital?Strictly speaking, a repayment of contributed capital is a return of capital. A return of capital reduces cost base and when cost base is reduced down to nil, any further reduction should be taken up as an assessable capital gain. But - yeah - how did you originally record the contributed capital? If you are doing some SME books, I think often accountants just happily post the figures as "credit loan account" and the repayment is just posted as "debit loan account"....