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This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 July 2011
what is share application money and share allotment money
CA Ayush Agarwal
(Expert)
02 July 2011
say u r a co.
and whenever u recd. amt as application from investor for investing in ur co's share then it is application money.
and when allotment made of shares then allotment money.
and whenever u recd. amt as application from investor for investing in ur co's share then it is application money.
and when allotment made of shares then allotment money.
02 July 2011
As and when Company flot the shares in the market a price is fixed for the investors and out of that price it is deivided in
1) Share Application Money
2) Share Allotment Money
3) Final Call Money
Let us take that X & Co Ltd. has made a public offer of it's share for Rs. 125/- out of which on Application you have to pay Rs. 50/-. Once you deposited Rs. 50/- this is called Share Application Money. Say you have been alloted 50 Shares and you applied for 50 Shares then you have to pay agains some money as fixed by the company this is called allotment money and after some time the company calls you to pay the final call then the payment made by you is called final call money.
1) Share Application Money
2) Share Allotment Money
3) Final Call Money
Let us take that X & Co Ltd. has made a public offer of it's share for Rs. 125/- out of which on Application you have to pay Rs. 50/-. Once you deposited Rs. 50/- this is called Share Application Money. Say you have been alloted 50 Shares and you applied for 50 Shares then you have to pay agains some money as fixed by the company this is called allotment money and after some time the company calls you to pay the final call then the payment made by you is called final call money.
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