Networth

no it is not included

e.g  equity share 5 lac (face value 10 rs each fully paid)

    aplication money pending for allotment 2 lac (25000x8)

     R & S                                                   3 lac

     aeests less current liabilities 15 lac

value per share = 15lac/(.5+.25 lac ) = 20 rs. per share full paid up

share value of pending for allotment 20-2 = 18 rs. per share

Originally posted by : ANJALI NEGI
	Greetings of the day to everyone!!! Can anyone tell me whether Share application money pending towards allotment included in the net worth of the company? IF yes/no then Why...

‘Share Application Money Pending Allotment’ will be included in the Net Worth of a Company to the extent NOT REFUNDABLE.

Lokesh sir i am a bit confused with ur example!! actually..can u explain be in a simpler manner.

Dear anjali, whatever i given is from very logical way, but it may be wronge as per icai answers....our sir said this thing to us when we were taking coaching ..........

logic of rs. 2 minus is that after paying rs2 that partly paid shareholder will also become fully paid up shareholder hence only difference will be only of amount which is yet to be paid by shareholder.

Yes it will be included in Net worth of the company.

However as per revised Schedule VI it has to be shown seperately under the head  Shareholders funds .

SAP is not included in networth of the company.

In generalm it shouldn't be included for calculating Net Worth, but the definition of Net Worth may vary in the different statues.