Application Money
This query is : Resolved
18 June 2008
Application money received by company will be shown as liability or we can shown it as capital??????
CA BISHAN AGARWAL
(Expert)
18 June 2008
IT SHOULD BE SHOWN IN LIABILITIES
21 June 2008
thanks bishan
bt i hv client who have received money towards application money & has urgent need of finance,so he wants loan for this. If he shows application money in capital account then his share capital becomes more than his authorised capital & if shows as liabilities then his working capital will be negative then bank will not provide loan,any other way if any????????
bt i hv client who have received money towards application money & has urgent need of finance,so he wants loan for this. If he shows application money in capital account then his share capital becomes more than his authorised capital & if shows as liabilities then his working capital will be negative then bank will not provide loan,any other way if any????????
Chintan Gajjar
(Expert)
23 June 2008
Dear Friend,
It is the correct way to show Application Money under Share Capital Head. If it exceeds authorised capital, it means you have to return some part of the application money. Bank will get attention if you show under anyother head for finance purpose.
It is the correct way to show Application Money under Share Capital Head. If it exceeds authorised capital, it means you have to return some part of the application money. Bank will get attention if you show under anyother head for finance purpose.
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