Balance sheet related
This query is : Resolved
03 August 2011
Hiii,
If any company TRADING IN SHARES give application money to other company (allotment pending) for purchase of shares of that company then How that application money to be shown in Balance Sheet as per schedule VI format??? WILL IT BE SHOWN IN PURCHASE OR WILL IT BE TREATED AS INVESTMENT OR WHAT OTHER TREATMENT CAN BE DONE PLZ GUIDE
If any company TRADING IN SHARES give application money to other company (allotment pending) for purchase of shares of that company then How that application money to be shown in Balance Sheet as per schedule VI format??? WILL IT BE SHOWN IN PURCHASE OR WILL IT BE TREATED AS INVESTMENT OR WHAT OTHER TREATMENT CAN BE DONE PLZ GUIDE
Preety Parik
(Expert)
03 August 2011
In your case, shares are your goods and the company to whom you have paid application money is your creditor. Since shares are not allotted means goods are not purchased. payment made is in the nature of advance to creditor. Shown in under " Current Assets, Loans and Advance" under Advances as Advance to creditor.
In your case, shares are your goods and the company to whom you have paid application money is your creditor. Since shares are not allotted means goods are not purchased. payment made is in the nature of advance to creditor. Shown in under " Current Assets, Loans and Advance" under Advances as Advance to creditor.
05 August 2011
thanks Preety
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