Money paid for IPO under ASBA in someone else

A/c entries 1701 views 1 replies

As per the new ASBA rules, a person can apply for shares in a IPO on behalf of  5 persons.

How will the accounting for the payment be made in the books of the parties.

 

I am giving an example:

A applies for the shares worth 2 lakhs in name of B with all details of B only including his demat account number.

The Bank withholds 2 lakhs from A's Bank account till the shares are alotted & when the shares are alloted, that much amount is debited to A's Bank account & the balance amount is released for utilization

Shares for 15,000 are alloted to B by the company & the shares are credited directly by the Registrar to the demat account of B & the bank account of A is debited by15,000

B gets the shares & pays 15,000 to A + 250/- as interest for utilising his money for the IPO period

 

How will the entries be passed in the books of accounts of both A & B and also how will the confirmation be made

 

Thanks for advising

Replies (1)

B shall be debited amt to Rs. 15000 at the time of allotment of shares nd bank will be credited nd when  B will pay the same ,B & Interest shall be credited. In my opinion it shall be treated  simple transaction as we do at the time of  making loan to the parties.

                   If m wrong then correct plz.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details