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SHARE APPLICATION MONEY

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(Querist)
16 December 2009 BEING A LENDER, SHOULD I TREAT SHARE APPLICATION MONEY AS PART OF EQUITY/ NET WORTH OF THE PVT LTS CO., IF ITS AUT CAPITAL IS FULLY SUBSCRIBED AND PAID AND THERE IS NO APPLICATION MADE TO ROC/COMPANY LAW BOARD FOR INCREASE IN AUTH CAPITAL . THE MONEY IS OUT STANDING IN BALANCE SHEET FOR TWO YEARS NOW.

JOSHI
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Rasesh

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Rasesh (Expert)
23 December 2009 No. You have to show the amount as creditors or unsecured loans.
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