Anitha (Articles) (121 Points)
14 September 2016Hi All,
If the share application money received from members is allotted within prescribed limit. How we can treat in books without violating the law.
Whether it can be treated as members loan. If treated so, deposit rules attracts. Kindly suggest apprpriate measures.
Thanks in advance
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 14 September 2016
You have to treat it as share application money which is not 'deposit'
[Ref.Rule 291)(c)(vii) of Companies (Acceptance of Deposits) Rules 2014].
CAclubindia
