share application money (plz reply soon)

hai mohit
Firstly shares are investments  made in a company to enjoy a dividend benefit & should be treated as investment these are shown under the same head in B/S
Loans or advanes are those which are for specified period and these are interest yeilding elements

ok.............bye for any more query mail me

srinivas

DEAR MOHIT,

ACCORDING TO AS-13, INVESTMENTS ARE ASSETS HELD BY AN ENTERPRISE FOR EARNING INCOME BY WAY OF DIVIDENDS, INTEREST.

THERE IS NOT RIGHT TO ENJOY DIVIDEND TILL YOU ARE ALLOTED THE SHARES, HENCE THEY ARE NOT INVESTMENT.

THEY SHOULD BE TREATED AS LOANS AND ADVANCES TILL ALLOTMENT.

REGARDS,

RAMKRUSHNA

hi

it shall be treated as advance given b/c yet u r not the owner of that part of capital of co (till allotement)



regards
k