What is the nature of share application account?

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CEO
29 Points Posted on 16 June 2020

Hello, Pls help me with question.

What is the nature of share application account.?  Nominal account or personal account. ? And what is the account treatment when shares are issued at par and are payable in full in a lumpsum?

Thank you in advance..

Regards

Bijoy

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On 16 June 2020 at 20:15 Report
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This discussion explores the nature of a share application account, questioning whether it is a nominal or personal account. One perspective suggests it's a capital account under IndAS 1, treated as a real account. The accounting treatment for shares issued at par and paid in full is also discussed, with entries like Bank to Share Capital.

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My grammar is 💯 good I
5110 Points Posted on 16 June 2020

 I think IndAS 1 presents all the Allotment, application, first and final call classifications into Equity. This is a capital account. Then recording transactions for application, Allotment first and final call can be concise to this:

Bank 

To Share Capital a/c

when payment is made, reverse the entry. Meantime, any dividend paid, retained earnings will be debited.  

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On 16 June 2020 at 22:44
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Student
553 Points Posted on 17 June 2020
Share application account is a real account.
1 Reply
On 17 June 2020 at 23:05

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