Question

Share Application Money (Refundable) is shown in the Balance Sheet as ______.

Options

• Other Long-term Liabilities.

• Other Current Liabilities.

• Short-term Provisions.

• Short-term Borrowings.

Answer 1

Share Application Money (Refundable) is shown in the Balance Sheet as Other Current Liabilities.

Explanation:

Share application money that must be refunded is a liability because the company owes this cash back to the investors. Since this refund must be paid quickly (well within 12 months), it is a current liability. It is placed under Other Current Liabilities because it is an auxiliary financial obligation, not a regular business loan or an operational trade debt.