02 August 2010
What is the accounting treatment given for shares applied for by a company in another company? Is the amount paid on shares be shown under Share capital-share application money or under Advances in Current assets-debtors?
02 August 2010
TIll date of Share allotment, it will be shown as Application money for Share Capital in Loan & advance under Current Asset. As soon as Share alloted agaisnt it, then it will be tranfer to Investment in Shares of ABC Co under Current Assets.
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