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Can the balance on the credit side of the Director's current account be transfered to Share capital?

WAIDI KOLAWOLE's Profile

The company authorized and paid up share capital is N1,000,000 and director current account balance is showing N78,000,000 in the previous year balance sheet. During the year under review, the company increased its share capital to N50,000,000 by creating additional 49,000,000 units of share ranking parri pasu with the existing one. The company accountant now transfered the sum of N49,000,000 from the director Current account to reduce the balance to N29,000,000. My question now is that whether the treatment is proper.

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