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Debenture application money

Annapurna (CA Job) (29 Points)

16 April 2014

Hi everyone,

Can anyone of you explain the treatment of excess debenture application money and pending allotment of debenture application money which has to be followed by the private limited companies.

Please do share your views,

Thanks

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1 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (7157 Points)
Replied 25 April 2014

For Payment At the time of liquidation Shareholders are paid at last debentureholders are paid- after paying off before the shareholders. debentureholders, creditors etc.Surplus At Liquidation Surplus is not paid to After paid all the liabilities if debentureholders. there is any surplus, is paid to shareholders.