Allotment of shares

Originally posted by : pardeep bansal
	If i get a cheque as share application money and the cheque is presented into the bank for clearance. Can allotment be made at this point if the cheque is not cleared yet.

wen it l b cleared then

NO,not until it is cleared
shares are not alloted on the basis of cheque received
shares can be alloted only when the share application money account is credited against the bank a/c i.e, the payment has been received in account
journal entry would be
Bank a/c Dr.
To share application money a/c
now the shares can be alloted by the BOD in the board meeting