Jishnu Surendran (Finance Manager) (312 Points)
17 December 2012A company had raised advance against share capital MANY YEARS AGO.This year the company issued shares against that advance.Are those shares to be disclosed as 'Shares Issued Pursuant to a Contract Without Payment Being Received In Cash' or considered normal equity shares as payment received in cash ?
CA Pintu Mishra
(Chartered Accountant- Industry)
(514 Points)
Replied 17 December 2012
the advances which was raised against share capital is termed as share application money and now if you are issuing shares against the share application is in law. You can show them as share capital issued against cash receipt.
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