Question
The S hare application money received by a company but
pending allotment is a type of a _______ for the company. ÂSolution
Share application money pending allotment is a liability which is shown as a separate item in the balance sheet. It is a liability since the company is liable to either allot shares against that money or refund it. Any application money received for allotment of securities and due for refund is shown under other current liabilities
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