Bijoy (CEO) (33 Points)
16 June 2020Hello, Pls help me with question.
What is the nature of share application account.? Nominal account or personal account. ? And what is the account treatment when shares are issued at par and are payable in full in a lumpsum?
Thank you in advance..
Regards
Bijoy
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 16 June 2020
I think IndAS 1 presents all the Allotment, application, first and final call classifications into Equity. This is a capital account. Then recording transactions for application, Allotment first and final call can be concise to this:
Bank
To Share Capital a/c
when payment is made, reverse the entry. Meantime, any dividend paid, retained earnings will be debited.
Padmanabhan
(Student)
(1321 Points)
Replied 17 June 2020
CAclubindia
