One of our Company has given some money to another private company as 'share application money' and it is there with them for around 2-3 yrs. Now my question is that- what the lending company should show in its balance sheet ? Can it be shown as investment or as Loans and Advance ? it is being shown as Investment for the last years and as per me-its wrong. If shares are not allotted against such money, it cant be shown as investment and also register of investment u/s 49 is not required to maintain for such amount.
Am i right friends ? Pl supplement.
CAclubindia
