INVESTMENT OR LOANS AND ADVANCES

NIRALI SOLANKI (JOINT MANAGER LEGAL & SECRETARIAL)   (87 Points)

25 September 2010  

I have a question regarding the following matter.

"A" Ltd have subscribed for shares in new company "B"Ltd (as first Subscriber), now the accounting year for "B" Ltd ends on 31/03/2011, now the problem is whether the amount invested as subscriber in "A"ltd has to shown under the head of Investmentsor Loans & Advances. ]

"A" ltd argues that as we have not received share certificate we can show it as Loans & Advances while the auditor of "B" ltd says that it should be under the head of Investments.

Please guide me in the matter.

Nirali Solanki