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Question
In allotment of shares, _______ A/c is debited and _________ A/c is credited, for receipt of allotment amount.
In allotment of shares, _______ A/c is debited and _________ A/c is credited, for receipt of allotment amount.
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Solution
The correct option is B Bank, Share Allotment
When minimum subscription has been received and certain legal formalities on the allotment of shares have been duly complied with, the directors of the company proceed to make allotment of shares. The allotment of shares implies a contract between the company and the applicants who now become the allottees and assume the status of shareholders or members. Before allotment, money is received by the company and for that following entry will be passed :Bank A/c Dr. To Share Allotment A/c
When minimum subscription has been received and certain legal formalities on the allotment of shares have been duly complied with, the directors of the company proceed to make allotment of shares. The allotment of shares implies a contract between the company and the applicants who now become the allottees and assume the status of shareholders or members. Before allotment, money is received by the company and for that following entry will be passed :
Bank A/c Dr.
To Share Allotment A/c
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