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Suspance Capital

Naga Srinadh peddi (Accountant) (196 Points)

10 October 2009

What is Suspance Capital?Please tell me

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6 Replies

Satish Makam (Asst. Manager - Accounts) (294 Points)
Replied 10 October 2009

can you brief your question

Deeps (Article Assisstant) (2485 Points)
Replied 11 October 2009

Originally posted by :Naga Srinadh peddi
"	What is Suspance Capital?Please tell me	"

What??

Varun Malhotra (Chartered Accountant) (207 Points)
Replied 11 October 2009

Capital Suspense account is generally used when the transaction can not be appropriately classified under any other capital account due to not meeting the requirements to classify under other capital accounts.

For example, in case of companies, when companies issue shares and recieve application money for subscripttion, the amount received on application can be grouped under capital suspense account pending the allotment of shares because it can not be grouped under share capital untill and unless shares have actually been subscribed and alloted. Once shares are alloted, capital suspense account is regrouped to share capital and share premium account (with break up of face value and share premium above face value).

Naga Srinadh peddi (Accountant) (196 Points)
Replied 12 October 2009

Thankyou very very much Varun Malhotra Sir.

Cs.Gautam Roy (Company Secretary) (124 Points)
Replied 09 January 2010

Varun

can u explain the balance sheet treatment at the end of the F/Y , when share are

pending allotement, in which schedule the same same shal be kept.

gautam

Varun Malhotra (Chartered Accountant) (207 Points)
Replied 09 January 2010

Pending the allotment, application money received will be disclosed separately under shareholder's fund as advance towards share capital. It will not be included under share capital grouping.

Hope this clarifies.