Company received Share Application Money from subscribers in separate bank account. After allotment of shares company transferred the entire amount to another bank account. What shall be the nature of former bank account opened for subscripttion?
Does it need to be closed after allotment?
Not sure ... I think it should be opened as a share application Ac... It would be current account. Provision not stating anything about closure.. And in general practice is account is opened for specified purpose it would be closed after the purpose is completed.
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