Share application money

prakash (Company Secretary) (1352 Points)

27 July 2015  

Dear Professional Coleagues,

One of our client company bought land from X in year 2010  , instead of paying money, decided to allot Companys' shares to land owner, however company hasn't made allotment and showing as share application money in balance sheet. in this regard i have following queries;

1. is showing of amount as share application money in balance sheet right process?

2. Company decided to allot shares in its meeting held on 05.04.2015 to owners, what is process it has to follow.