09 August 2012
Can share application money pending for allotment shown in balance sheet even if it exceeds the limit of authorized capital? For example:- paid up capital = 50,00,000 Authorized capital = 55,00,000 Can share application money pending for allotment of Rs. 10,00,000 can be shown in balance sheet?
If application Money has not refunded till the Finalisation of Books than It will shown as Liabities to pay to applicant instead of Application or advance allotment money.
09 August 2012
Yes, it can be shown .As per Revised Schedule -VI you have to give a note regarding the time of allotment of the money standing in share application account and that the authorized capital would be increased in future before the allotment of the share standing in share application account.
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