Share application Money

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Sheetal (Querist)
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28 March 2011 Hi

My company is purchasing land in exchange wants to issue shares, therefore i wants to show in its accounts that share application money received in exchage of land.

This will be shown as
Land A/c---Dr
To Share Application Account--Cr

This means in other way share application money recd in kind.

My question is whether company can receive share application money in kind.

Jayashree S Iyer

Jayashree S Iyer (Expert)
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29 March 2011 Allotment of shares for consideration other than cash is permitted.

You need to file Form 2 on allotment of shares showing "allotment for consideration other than cash".

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