CA Raghavender (CHARTERED ACCOUNTANT) (305 Points)
16 September 2009hi All
I hv doubt regarding share Application money.
A Private Limited Company Shows Share Application Money in Balance Sheet which is accepted from It's sister concern company. How long it can Show Share Application Money in B/S.
Thanks And Regards--
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 16 September 2009
Hi,
When the Company has accepted the Share Application Money you should do one simple thing. You may record the above transaction i.e. receipt of share application money and assurance given to proposed allottee in the board meeting minutes.
In other words simple noting of such receipt in the board minutes would be enough.
Regarding time limit to convert such share application money into capital the law is silent. However as per practice allot share with 6 months of the receipt of application money.
Best Regards
Further collect the share application form from the proposed allottee for your record. You may download the sample share application from the link mentioned below:
/share_files/files_display.asp?files_id=11908
Regards
CAclubindia
