can anyone please tell me the presentation of share application money in the balance sheet of a company.
I think it should be presented under the head unsecured loans, but some people argue that it should be presented under Share Capital.
Please guide..............
The effect of share application will be under head Share Capital below paid up capital if Company plans to allot the shares.
But if share application is to be refunded than It will appear under head Current liability if less than 1 yrs or under unsecured loan if more than one year has lapsed.
CAclubindia
