Please can anybody detail -- What is Share Suspense Account? Also what does it mean or impact mean while studing a company's financials. Sintex Plastic has 12% in share suspense account and nothing in equities/shareholder capital in 2017 , I am assuming of the split from parent company Sintex. But what are the inferences one should make from an accountant stand point. Looking for answers from experts in this form. Thank you!
1 Replies
satish
(teaching)
(2046 Points)
Replied 30 May 2018
Share suspense account is a temprorary a/c created, to transfer any receipts on shares issue or re-issue (in case of forefeiture) is case of a pending decision regarding that receipt.
Eg: when re-issue is made in case of a forfeiture of share,
1. Bank a/c.....................................Dr. XXX
To share suspense a/c XXX then after decision regarding reissue
2. share suspense a/c.................. Dr. XXX
To share capital a/c XXX balance if any in share suspense will be paid of when it is not alloted...
3. share suspence a/c...................Dr. XXX
To Bank a/c XXX
Eg: when re-issue is made in case of a forfeiture of share,
1. Bank a/c.....................................Dr. XXX
To share suspense a/c XXX then after decision regarding reissue
2. share suspense a/c.................. Dr. XXX
To share capital a/c XXX balance if any in share suspense will be paid of when it is not alloted...
3. share suspence a/c...................Dr. XXX
To Bank a/c XXX
Recent Topics
- Income Tax Rectification-TDS not claimed in ITR
- Gst Amendment HSN summary
- Unable to get some value eligible for claim in old
- Tax payment adjustment
- Accounting in Fintech companies
- Section 80DD Deduction Filing Error
- Which Form I have to fill - ITR1 or ITR2
- INTEREST EARNING IN USD AND JPY FCNR REPORTING IN
- ONLING FILLING ITR2 FOR PENSIONOR
- Sold Shares and purchased Open plot
Related Threads
Trending Online Classes
CAclubindia
