Journal Entry - Issue of shares at par
This query is : Resolved
18 April 2010
On receipt of application money:
BANK A/C.......DR
SHARE APPLICATION A/C......CR
while I understand that bank a/c has been debited because it has received money whats confusing is why has share application a/c been credited.
BANK A/C.......DR
SHARE APPLICATION A/C......CR
while I understand that bank a/c has been debited because it has received money whats confusing is why has share application a/c been credited.
18 April 2010
AT THE TIME OF SHARE APPLICATION MONEY RECD YOU HAVE MADE CORRECT ENTRY.
BANK A/C DR
SHARE APPLICATION MONEY A/C CR.
SHARE APPLICATIO MONEY A/C IS TO BE CREDITED BECAUSE IT IS LIABIITY OF COMPANY UNTIL UNLESS WE HAVE NOT ISSUE SHARE CAPITAL TO APPLICANT.
AT THE TIME OF ISSUE OF SHARE AT PAR , ENTRY WILL BE AS FOLLOW :
SHARE APPLICATION A/C DR.
SHARE CAPTIAL A/C CR
AT THE TIME OF SHARE APPLICATION MONEY RECD YOU HAVE MADE CORRECT ENTRY.
BANK A/C DR
SHARE APPLICATION MONEY A/C CR.
SHARE APPLICATIO MONEY A/C IS TO BE CREDITED BECAUSE IT IS LIABIITY OF COMPANY UNTIL UNLESS WE HAVE NOT ISSUE SHARE CAPITAL TO APPLICANT.
AT THE TIME OF ISSUE OF SHARE AT PAR , ENTRY WILL BE AS FOLLOW :
SHARE APPLICATION A/C DR.
SHARE CAPTIAL A/C CR
Message likes :
1 times
18 April 2010
AGREE WITH MR. BANSAL.
18 April 2010
agree with experts
26 April 2010
agree with experts
25 May 2010
It should be credited to Share application money because the money is not taking the character of share capital unless share are allotted against the money. So till the time u allot shares in a board meeting alloting shares to the applicant, that remains only application money.
01 November 2010
well said... by Mr bijender and venkat rao
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
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- Condonation . E-Verification of last year return .
- Reopen of assessment proceeding
- DIN reactivation
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Eway bill generation from place other than registeted
- GST rate and HSN code for sale of racing horses
- TDS Return Q1 FY 2026-27
- 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
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
