Question

How should share application money be disclosed in financial statements?

a.

It should be shown under the head Equity.

b.

It should be separately shown under 'Other current liabilities'.

c.

It should be shown under the head Loans and Advances.

d.

It should be disclosed in the notes to accounts only.

Posted under IC 89 Management Accounting

Answer: (b).It should be separately shown under 'Other current liabilities'. Explanation:Share application money not exceeding the issued capital and to the extent not refundable should be shown under the head Equity, and the amount in excess or refundable should be separately shown under 'Other current liabilities'.

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Q. How should share application money be disclosed in financial statements?
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