Statutory compliance

This query is : Open

CA.Balakrishnam.V

CA.Balakrishnam.V (Querist)
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14 December 2009 Can the share application money be received in form of kind? Do the following entry is correct?

ADVANCE TO CREDITORS a/c Dr
to SHARE APPLICATION MONEY a/c.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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14 December 2009 Share application money can be received in cash.

But in case of IPO/Right Issue etc., now-a-days; these are received by account payee cheque or demand draft only.

The entry will be:-

Cash or Bank a/c Dr
To Share Application A/c

CA.Balakrishnam.V

CA.Balakrishnam.V (Querist)
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19 December 2009 Can the share application money be received in form of kind? Do the following entry is correct?

ADVANCE TO CREDITORS a/c Dr
to SHARE APPLICATION MONEY a/c.

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