bt i hv client who have received money towards application money & has urgent need of finance,so he wants loan for this. If he shows application money in capital account then his share capital becomes more than his authorised capital & if shows as liabilities then his working capital will be negative then bank will not provide loan,any other way if any????????
23 June 2008
Dear Friend, It is the correct way to show Application Money under Share Capital Head. If it exceeds authorised capital, it means you have to return some part of the application money. Bank will get attention if you show under anyother head for finance purpose.
CAclubindia
