hi friends can any one helpme out regarding a quarry about share application money,
Our company spend some amount for purchase fo Assets ad for expenses to our sister company by maintaining a account withe the sister concern at the end of the year the balance amount is transfered to share application money can we do so other what u can mede such balance, if it is shown unsecured loans our company is not charged any interest and we are not spend amount in cheque only ple clarfy this regard
No share application money is differ from amount spent for any expenses incurred, instaed you can create Directors Hand loan. there u no require to give the interest and all,
offcourse satish...
in my opinion, if th same is current liabilities, then it vll be deemed as share allotment against cash..
if it is unsecured loan (i.e. balance due is for more than 12months) then it vll be treated as share allotment against otherthan cash..
So the balance due can be taken as share application money..
also consider the opinion of other members on this point..
Adarsh
CAclubindia
