BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When Allotment is made and money is due, the entry will be ____
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Debit:Share Capital Credit:Share Allotment Account
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Debit:Share Allotment Account Credit:Share Capital
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Debit:Cash Account Credit:Share Allotment Account
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Debit:Share Allotment Account Credit:Cash Account
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Explanation:
Detailed explanation-1: -In allotment of shares, A/c is debited and A/c is credited, for receipt of allotment amount.
Detailed explanation-2: -Share Application and Allotment A/c is debited while Share Capital A/c is credited for transfer of application money and allotment amount due.
Detailed explanation-3: -Securities premium a/c Is credited with premium amount and Share capital a/c is also credited with the amount due on allotment less premium amount.
Detailed explanation-4: -When allotment money is received, the following entry is passed: Bank a/c Dr. 4.
There is 1 question to complete.