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Application money pending allotment under head current liab

This query is : Resolved 

03 April 2014 Dear Sir/Mam

As per new companies act share application money pending allotment has to be either refunded or allotted or to be treated as unsecured loan.
My question is what are the implications of treating such application money as current liability. Can a company do so or it has to be strictly treated as unsecured loan?

Thanks and Regards
Drishti

09 April 2014 In case allotment is not made within 60 days and the money is also not refunded, it will be strictly treated as a deposit.



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