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Share application Money

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28 March 2011 Hi

My company is purchasing land in exchange wants to issue shares, therefore i wants to show in its accounts that share application money received in exchage of land.

This will be shown as
Land A/c---Dr
To Share Application Account--Cr

This means in other way share application money recd in kind.


My question is whether company can receive share application money in kind.

29 March 2011 Allotment of shares for consideration other than cash is permitted.

You need to file Form 2 on allotment of shares showing "allotment for consideration other than cash".



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