how to deal with share application money
Neeraj Kumar (13 Points)
10 May 2007
in the balance sheet,share application money is shown under share capital, WHY
2 Replies
Naveen
(25 Points)
Replied 10 May 2007
application money is first of all is a liability since it is till now not converted into the capital as not alloted. secondly if we go by schedule vi then their the placing of share application money is just below the share capital
hence it shown as seperately under the sub head share capital up to the allotment of shares to the applicant and the from the date of allotment it will form part of share capital.
hence it shown as seperately under the sub head share capital up to the allotment of shares to the applicant and the from the date of allotment it will form part of share capital.
Naveen
(25 Points)
Replied 10 May 2007
application money is first of all is a liability since it is till now not converted into the capital as not alloted. secondly if we go by schedule vi then their the placing of share application money is just below the share capital
hence it shown as seperately under the sub head share capital up to the allotment of shares to the applicant and the from the date of allotment it will form part of share capital. :P
hence it shown as seperately under the sub head share capital up to the allotment of shares to the applicant and the from the date of allotment it will form part of share capital. :P
Recent Topics
- Profit or Loss on Sale of Assets Accounting treatm
- Clarification on RCM on Rent Payment for QRMP Deal
- Reclaimed itc in gstr9
- Gamification in Accounting Software: Boosting Enga
- I want to knw Hsn code and gst rate of resin produ
- Schedule FA clarification
- Income tax on freelance income from crypto
- ITC temporary reversal and reclaim
- Query on Transactions
- Two GSTN under different PAN in same address
Related Threads
CAclubindia
