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Networth

ANJALI NEGI (Chartered Accountant) (1263 Points)

29 October 2012

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...

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9 Replies

CA Pooja Agarwal (Chartered Accountant) (3228 Points)
Replied 29 October 2012

no it is not included

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 29 October 2012

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

Deepak Gupta (CA Student) (15922 Points)
Replied 29 October 2012

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.

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 29 October 2012

agree with deepak.......

ANJALI NEGI (Chartered Accountant) (1263 Points)
Replied 29 October 2012

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

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 29 October 2012

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.