About share application money pending for allotment

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Jyoti jain (Querist)

09 August 2012 Can share application money pending for allotment shown in balance sheet even if it exceeds the limit of authorized capital?
For example:- paid up capital = 50,00,000
Authorized capital = 55,00,000
Can share application money pending for allotment of Rs. 10,00,000 can be shown in balance sheet?

Rajnish Singh

Rajnish Singh (Expert)

09 August 2012 Hi Jyoti,

If application Money has not refunded till the Finalisation of Books than It will shown as Liabities to pay to applicant instead of Application or advance allotment money.

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CA RICHA BADALIA

CA RICHA BADALIA (Expert)

09 August 2012 Yes, it can be shown .As per Revised Schedule -VI you have to give a note regarding the time of allotment of the money standing in share application account and that the authorized capital would be increased in future before the allotment of the share standing in share application account.

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CA Ayush Agarwal

CA Ayush Agarwal (Expert)

09 August 2012 Agree, But Must Have to Refund Within 6 Months as Per Co act.
No Issue Under IT Law Other Than to be received by cheque only above 50k.

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