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Share Application Money

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This query is : Resolved

Prajakta Prabhune (Querist)
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03 October 2009 Dear Sir,
Our client is a Private limited company and they received cash Rs. 36,00000 as 'Share Application Money' from their 5 Directors. The company in actual not issued any Shares till date to any one. But they only applied to ROC to increase in Capital by paying Rs. 1,00000. How these to be shown in Balane Sheet? And for sure it will attract Section 271D. Then how this is to be dealt with? Because i have to finalise the accounts of the company before 31/10/2009 as the date has extended. Is there any way out fot not attracting section 271D?

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Guest (Expert)

05 October 2009 Shown under the head shareholders/owners fund.

Section 271 of the company act, 1956 is omitted.
vide
Omitted by the Companies (Amendment) Act, 1965

Which act'ssection 271D, you are talking about?

Prajakta Prabhune

Prajakta Prabhune (Querist)
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06 October 2009 I meant to say is 269SS/T whether it will be applicable?

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