suspense capital
This query is : Resolved
23 October 2008
Can any body tell me the meaning of the "suspence capital".
25 October 2008
There is no such type of account, i m listening it first time
05 November 2008
Ok thank u
But how to face such questions
What shll be the answer to such question
Can i Say I don't know
or
can i say "there is no such concept"
(but how could i tell that there is no such concept because no one may not know every concept
But how to face such questions
What shll be the answer to such question
Can i Say I don't know
or
can i say "there is no such concept"
(but how could i tell that there is no such concept because no one may not know every concept
14 November 2008
Dear A J Shankar. If you understand the meaning for "share suspense a/c" you can understand what is suspense capital. I hope both are same.
Share supense [suspense capital]:
Company will issue applications to the public for subscribing shares. Public will also subscribe shares. After that company should generally allot the shares to applicants. If company has received applications and not made allotment such amount will be transferred to Share suspense a/c. To be precise, applications pending allotment is called suspense capital or share suspense. Let us see how it is possible through an example.
Assume there is a company by name X Ltd which closes its books of account on 31.12.08. Assume On 15th of December 2008, the company goes for public issue. Company receives 10000 applications. If 10000 applications are allotted immediately within the remaining 16 days, then there is no problem. Entire amount will be transferred to share capital. Out of 10,000 applicants if 8000 shares were allotted and 2000 were rejected means, then no problem. 8000 shares will be transferred to share capital and 2000 shares money will be refunded. If out of 10000 shares, 8000 shares were allotted on pro-rata basis, then also no problem. 8000 share money will be transferred to share capital and 2000 shares excess money may be utilised for adjustment against allotment. But till 31st december, 2008 if the company has not started allotment or only made a part allotment, then the shares pending allotment is called as shares suspense. Because, it is neither rejected nor allotted nor adjusted against future liability.
Hope you got some information from what i told.
My dear experts, if i am wrong please rectify me.
Share supense [suspense capital]:
Company will issue applications to the public for subscribing shares. Public will also subscribe shares. After that company should generally allot the shares to applicants. If company has received applications and not made allotment such amount will be transferred to Share suspense a/c. To be precise, applications pending allotment is called suspense capital or share suspense. Let us see how it is possible through an example.
Assume there is a company by name X Ltd which closes its books of account on 31.12.08. Assume On 15th of December 2008, the company goes for public issue. Company receives 10000 applications. If 10000 applications are allotted immediately within the remaining 16 days, then there is no problem. Entire amount will be transferred to share capital. Out of 10,000 applicants if 8000 shares were allotted and 2000 were rejected means, then no problem. 8000 shares will be transferred to share capital and 2000 shares money will be refunded. If out of 10000 shares, 8000 shares were allotted on pro-rata basis, then also no problem. 8000 share money will be transferred to share capital and 2000 shares excess money may be utilised for adjustment against allotment. But till 31st december, 2008 if the company has not started allotment or only made a part allotment, then the shares pending allotment is called as shares suspense. Because, it is neither rejected nor allotted nor adjusted against future liability.
Hope you got some information from what i told.
My dear experts, if i am wrong please rectify me.
14 November 2008
Oh! Thanks a lot sir.
It give a clear idea about share suspense a/c.
Let me know whether AS-4 will apply in this context.
I mean the company has not allotted the shares to the subscribers by B/S dt.
But after a few days of B/S dt (say on jan 2nd of 2009) whether it is adjustable event or not?(By this time the board has not approved the accounts)
Please clarify me.
It give a clear idea about share suspense a/c.
Let me know whether AS-4 will apply in this context.
I mean the company has not allotted the shares to the subscribers by B/S dt.
But after a few days of B/S dt (say on jan 2nd of 2009) whether it is adjustable event or not?(By this time the board has not approved the accounts)
Please clarify me.
06 October 2009
Hello, is this an old query still pending? You can send me a Pm if yes....I m trying to take all old pending queries in Accounting Forum......Thanx.
06 October 2009
Hello, is this an old query still pending? You can send me a Pm if yes....I m trying to take all old pending queries in Accounting Forum......Thanx.
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
- CAPITAL GAIN REDEVELOPED FLAT
- Requirement under FEMA &RBI
- CLOSING STOCK QUERY
- PF wage ceiling
- ITC BENEFIT ON BROKRAGE PAID
- TDS refund Indemnity Bond
- Taxation on Old jewellery sold
- Query regarding TDS on EPFO Higher Pension Arrears- under wrong section
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- GST ISD Query on various AMCs
- REGARDING ITR FILING QUESTION
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
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
