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The sahre application is very much a part of the sahre holders money, hence, the same should be treated at par with the share capital unless the period of 60 days has been elapsed.
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Where is Share Application money receiced is shown in balance sheet?
The correct accounting treatment in respect of share application money is analysed as below: · Section 211 of the Companies Act, 1956 provides that the balance sheet of a company shall give a true and fair view of the state of affairs of the company and shall be in the form (either horizontal or vertical) as set out in Part I of Schedule VI. · The broad heads under "Liabilities" therein are (i) Share Capital, (ii) Reserves and Surplus, (iii) Secured Loans, (iv) Unsecured Loans and (v) Current Liabilities and Provisions. The item of 'share application money' does not appear in the subheads under any of these heads. · Any subscription received by a company against issue of share capital can be regarded as "subscribed share capital" only when the share capital is actually subscribed and allotted as well. Until the allotment is made, any subscription cannot be included in the amount of subscribed share capital. [ICAI Compendium of Opinions, Vol. XII, pp. 121 to 123]. Share application money, therefore, cannot be treated as 'Share Capital". · Share application money only in respect of invalid or revoked applications and excess application money received due to over-subscripttion, however, may be treated as "Current Liabilities". The instant case does not satisfy any of the above, hence cannot be treated as "Current Liabilities" Share application money, therefore, can neither be categorized as "Share Capital' nor "Current Liabilities". · The ICAI Compendium of Opinions, [Vol. XV, (1996 Edn.) pp. 34 to 36], opines that the "share application money pending allotment" should be shown in the balance-sheet under a separate heading between "Share Capital" and "Reserves and Surplus". · Share application money is also not an instrument, much less an Equity linked instrument.
Is share premium paid part of paid up capital?
Yes share premium paid is part of paid up capital and shown separately as share premium account in equity section of balance sheet.
What is subscribed capital stock?
Subscribed share capital stock is that capital for which investors actually paid money or subscribed while unsubscribed capital is that part of issued capital for which nobody subscribed or nobody purchased stocks.
How do you value common stock?
They are relative to the valuation of the company and the shares issued by the company. So for example if company has 2 million common shares and the valuation of a company is 4 million dollars then each common share is worth $2. Usually valuation of company occurs upon financing and that can vary, based on how well can you sell part or all your company, so for example if you are inquiring financing of $400,000 of the company at pre-money valuation of $4 million, that means that the post money valuation is $4.4 million, you can then either issue more shares for the same pirce of $2 per share or sell some of your own for $2.2 a share, because share prices is calculated post money. However when you do get financing, most investors would rather you issue preferred shares for the same price, because they will get more privileges with the preferred shares.
What is unappropriated equity on a balance sheet?
Unappropriated equity means that part of profit that is not available for distribution or not distributed to share holders.
Where is Share Application money receiced is shown in balance sheet?
The correct accounting treatment in respect of share application money is analysed as below: · Section 211 of the Companies Act, 1956 provides that the balance sheet of a company shall give a true and fair view of the state of affairs of the company and shall be in the form (either horizontal or vertical) as set out in Part I of Schedule VI. · The broad heads under "Liabilities" therein are (i) Share Capital, (ii) Reserves and Surplus, (iii) Secured Loans, (iv) Unsecured Loans and (v) Current Liabilities and Provisions. The item of 'share application money' does not appear in the subheads under any of these heads. · Any subscription received by a company against issue of share capital can be regarded as "subscribed share capital" only when the share capital is actually subscribed and allotted as well. Until the allotment is made, any subscription cannot be included in the amount of subscribed share capital. [ICAI Compendium of Opinions, Vol. XII, pp. 121 to 123]. Share application money, therefore, cannot be treated as 'Share Capital". · Share application money only in respect of invalid or revoked applications and excess application money received due to over-subscripttion, however, may be treated as "Current Liabilities". The instant case does not satisfy any of the above, hence cannot be treated as "Current Liabilities" Share application money, therefore, can neither be categorized as "Share Capital' nor "Current Liabilities". · The ICAI Compendium of Opinions, [Vol. XV, (1996 Edn.) pp. 34 to 36], opines that the "share application money pending allotment" should be shown in the balance-sheet under a separate heading between "Share Capital" and "Reserves and Surplus". · Share application money is also not an instrument, much less an Equity linked instrument.
Is share money deposit a part of equity?
A share money deposit is a part of equity. These are considered equity shares, and are long-term profit-invested deposits geared toward to stockholders of a company.
To give part of what you have to others?
Share!
What is Looney Tunes Networth?
Looney Tunes is part of the Warner Bros company. The company has a net worth of approximately three billion dollars.
A man bought ABC stock at 19.65 per share and it sold at 23.25 per share?
Smart guy! Maybe he will invest money for me. His profit per share = 23.25 - 19.65 = $3.60. Of course, part of that profit will go to his stock broker as a commission. And, he should keep part of that profit aside to pay the tax on his capital gain next April 15th.
What is ancillary application?
Ancillary application windows are windows that are not really part of the application's functionality, but are provided as a matter of convention.
What is the Part of speech of share?
The word share is a verb. The past tense is shared.
What is to give part of what you have to others?
share
What part of speech is share?
Verb
To give part what you have to others?
share
What does it mean to paste a cross signed photograph on an application form?
I think it means to sign the application form in such a way that part of your signature is on the paper(application form) and part of it is on the photograph pasted on the paper.
Why is share of common stock an asset for its owner and liability for corporation?
A single share is a part of capital of the company so if anybody purchase the share of company that person is investing in the share capital of company and providing the company necessary money to operate that's why it is the investment of the owner of share which is called then the shareholder of company and that shares becomes the asset of the shareholders and while company is acquiring capital in the shape of shares that's why it is the liability of the corporation to pay back that amount of money back to the shareholders at certain time or at liquidation as written in the agreement to raise the capital through share issue.
