A company has given advance for investment in shares of another company but allotment was not made on 31.03.2012. Where to show such advance as it is confirmed that allotment should be made...????
gautam (study) (47 Points)
30 June 2012A company has given advance for investment in shares of another company but allotment was not made on 31.03.2012. Where to show such advance as it is confirmed that allotment should be made...????
CS Rajveer Rai, Gurgaon
(CS)
(646 Points)
Replied 30 June 2012
untill you make allotment it is shown as application money
gautam
(study)
(47 Points)
Replied 30 June 2012
as application money under which head as per Revised Schedule VI ??
gautam
(study)
(47 Points)
Replied 30 June 2012
reason?? why it is not shown under long term loans & advances??
CS Rajveer Rai, Gurgaon
(CS)
(646 Points)
Replied 30 June 2012
share application money is not a loan anyhow , any amount used to acquire shares of a company is allways investment
gautam
(study)
(47 Points)
Replied 30 June 2012
N.Naveena Maheswara Rao
(Assistant manager for accounts)
(1096 Points)
Replied 30 June 2012
It should be disclosed under the head loans and advances as Share application money since it is an "advance"
Classify either as Long term or short term depending upon the terms of allotment
Johari Tailor
(Audit & Taxation)
(22 Points)
Replied 09 July 2012
ITS SHOULD BE SHOWN IN Other current liabilities AS PER REVESIED SCHEDULE VI (point g)
Application money received for allotment of securities and due for refund and interest accrued thereon. Share application money includes advances towards allotment of share capital. The terms and conditions including the number of shares proposed to be issued, the amount of premium, if any, and the period before which shares shall be allotted shall be disclosed. It shall also be disclosed whether the company has sufficient authorized capital to cover the share capital amount resulting from allotment of shares out of such share application money. Further, the period for which the share application money has been pending beyond the period for allotment as mentioned in the document inviting application for shares along with the reason for such share application money being pending shall be disclosed. Share application money not exceeding the issued capital and to the extent not refundable shall be shown under the head Equity and share application money to the extent refundable i.e., the amount in excess of subscriptttion or in case the requirements of minimum subscriptttion are not met, shall be separately shown under ‘Óther current liabilities’
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