25 November 2011
A company was incorporated on March 15 but the share capital money due from the subscribers to the memorandum has not been received yet as on 31 st March.How to present this in the Balance sheet as on 31 st March?Whether to show a Nil Balance sheet or Show the Balance sheet with Share capital of 1 lakh and share application money receivable of 1lakh?
25 November 2011
No you can not Show Nil balance in Paid up in Balance Sheet..It will amount to the infringement of Section 3(1)(iii) of the Companies Act.
CAclubindia
