Neeta (Finance) (345 Points)
14 January 2010Hello everyone
A company receives share application money in excess of its authorized capital. the company needs increase authorized capital but the thing is the money is received back date. three months back.
eminent members please suggest me is it possible to show share application money in excess of authorized capital in the balance sheet ???
i think the way out is show the EGM back date itself and file it with ROC with fine ? any other exit options ?? please suggest
regads
Neeta
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 14 January 2010
| Originally posted by : Neeta | ||
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Hello everyone A company receives share application money in excess of its authorized capital. the company needs increase authorized capital but the thing is the money is received back date. three months back. eminent members please suggest me is it possible to show share application money in excess of authorized capital in the balance sheet ??? i think the way out is show the EGM back date itself and file it with ROC with fine ? any other exit options ?? please suggest regads Neeta |
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Neeta,
If company receives Share application money more than authorised cap, there is no prob in that..
but company cant allot shares more than authorised cap..
u can alot shares in premuim so that the allotment wont cross the authorised cap of the company..
there is no prob to show share application money more than authorised cap coz allotment were not made on that balance sheet date..
Adarsh
nitin goyal
(audit manager)
(28 Points)
Replied 14 January 2010
hi
neeta
there is no problem abt company to show more than auth.capital
regads
nitin goyal
ca,cs
Amir
(Learner)
(4016 Points)
Replied 14 January 2010
Dear Neeta,
A Company can show share application money in it;s Balance Sheet even if paidup capital + share application money exceeds the authorized capital...
in short what friends above have stated is rite......
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