Presentation in B/S

This query is : Resolved

CA. Gaurav Agarwal (Querist)
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21 September 2008 There are two co's A and B. A purchase shares in B but the shares are not alloted by 31st March.

Whats the accounting treatment in both the co's as for A its can't be treated as investment as shares are not alloted and for B its no share issued.

How the presentation be made in both the B/S.

Jitender

Jitender (Expert)
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21 September 2008 co by whom amount is given will be shown u/h loans & advances.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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22 September 2008 For 'A', it is not the investment untill the shares are alloted to it and as such, should be grouped as an item of Loan and Advances. For 'B' it is not the share capital and should be shown as Share Application Money seperately.

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CA. Gaurav Agarwal

CA. Gaurav Agarwal (Querist)
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24 September 2008