Question

When a combined "Share Application and Allotment Account" is opened in the books of the company, which of the following accounts will be debited for money refunded on rejected application:

Options

• Share Application Account

• Share Application and Allotment Account

• Share Allotment Account

• Bank Account

Answer 1

Share Application and Allotment Account

Explanation:

The funds were credited upon receipt since a combined Share Application and Allotment Account was established. The same account will therefore be debited whether the money is returned or disallowed.