Journal entry in the case of Non Listed Company
This query is : Resolved
04 January 2025
How to make journal entry for shares purchased in non listed company
when Paid Rs. 10 Cr. on dated 12/12/24
and when to alloted of shares how to make journal entry and also which date share alloted how to know.
when Paid Rs. 10 Cr. on dated 12/12/24
and when to alloted of shares how to make journal entry and also which date share alloted how to know.
12 August 2025
1. When you pay Rs. 10 Cr for shares (say, on 12/12/2024):
Since you have paid money to purchase shares but shares are not yet allotted, this is treated as Advance for Shares or Share Application Money.
Journal Entry on 12/12/2024 (payment made):
Account Debit (Dr) Credit (Cr)
Share Application Money A/c 10,00,00,000
Bank A/c 10,00,00,000
Explanation: Paid advance money to non-listed company for shares.
2. When shares are allotted, you need to transfer the amount from Share Application Money to Share Capital account.
Journal Entry on Date of allotment:
Account Debit (Dr) Credit (Cr)
Share Application Money A/c 10,00,00,000
Share Capital A/c 10,00,00,000
Explanation: On allotment of shares, application money is converted to share capital.
3. How to know the date of allotment?
The date of allotment is typically the date on which the company’s Board of Directors passes the resolution approving the allotment of shares.
It is also the date mentioned in the allotment letter or share certificate issued to the shareholder.
You can ask the issuing company to provide the official allotment letter or share certificate with the allotment date mentioned.
Since you have paid money to purchase shares but shares are not yet allotted, this is treated as Advance for Shares or Share Application Money.
Journal Entry on 12/12/2024 (payment made):
Account Debit (Dr) Credit (Cr)
Share Application Money A/c 10,00,00,000
Bank A/c 10,00,00,000
Explanation: Paid advance money to non-listed company for shares.
2. When shares are allotted, you need to transfer the amount from Share Application Money to Share Capital account.
Journal Entry on Date of allotment:
Account Debit (Dr) Credit (Cr)
Share Application Money A/c 10,00,00,000
Share Capital A/c 10,00,00,000
Explanation: On allotment of shares, application money is converted to share capital.
3. How to know the date of allotment?
The date of allotment is typically the date on which the company’s Board of Directors passes the resolution approving the allotment of shares.
It is also the date mentioned in the allotment letter or share certificate issued to the shareholder.
You can ask the issuing company to provide the official allotment letter or share certificate with the allotment date mentioned.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Putting a heading on received mail
- Consolidated financials
- Reprocessing of rectification order AY 2025-26
- Section 50-fixed asset-->building ceases to exist
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- TDS on TRUST
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
