Share Application Money

CA.E.Deepan Chakravarthy (CA and CS Executive) (462 Points)

25 January 2008  

Hello friends,

    Please clarify my doubt. I have received share application money. I have not allotted any of shares till date. My outstanding share application money was Rs.5,00,000/- as on 31/03/2007. How should I treat the share application money? Shall I treat, it as Current liabilities? Whether I may penalize if I treat it, as a Shareholders fund.