CA Inter P1 · Chapter 9 · Question 5 of 10
Under Division I of Schedule III, 'Share application money pending allotment' (to the extent not refundable) is presented:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) As a separate line item on the face of the balance sheet between Shareholders' Funds and Non-current Liabilities
Explanation
Schedule III requires share application money pending allotment to be shown as a separate line item on the face of the balance sheet, between 'Shareholders' Funds' and 'Non-current Liabilities'. Only the portion that is refundable (for example, in excess of the amount to be allotted) is shown under other current liabilities.
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