Sometimes a combined account for share application and share allotment called __________ is opened in the books of a company.

Share Application Account

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Share Application and Allotment Account

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Share Allotment Account

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Share Capital Account

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Solution

The correct option is B Share Application and Allotment Account
While issuing the shares, various accounts are opened at the various stages depending on the calls. Below are the major accounts on which the amount is called up:
Share application Account- Application money called up
Allotment Account- Allotment money called up
First Call Account- First call amount called up
Second/Final Call Account- Final call amount called up

Sometimes, instead of opening two separate account for application and allotment, a combined account "Share Application and Allotment Account" is opened. Excess application money is adjusted towards the allotment money.

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