Match List-I with List-II
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List-I Allotment of Shares |
List-II Journal Entry |
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(A) For Transfer of Application Money |
(I) Share Application A/c Dr. To Bank A/c |
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(B) For Money Refunded on Rejected Application |
(II) Bank A/c Dr. To Share Allotment A/c |
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(C) For Amount Due on Allotment |
(III) Share Application A/c Dr. To Share Capital A/c |
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(D) For Receipt of Allotment Money |
(IV) Share Allotment A/c Dr. To Share Capital A/c |
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(III), (B)-(I), (C)-(IV), (D)-(II)
Application money first sits in the Share Application Account, a temporary account. Once shares are allotted, each step either moves money into Share Capital, sends it back, or records what is due and received on allotment.
(A) For Transfer of Application Money — this matches (III). On allotment the application money becomes part of capital: Share Application A/c Dr., To Share Capital A/c.
(B) For Money Refunded on Rejected Application — this matches (I). The money goes back out of the bank: Share Application A/c Dr., To Bank A/c.
(C) For Amount Due on Allotment — this matches (IV). The amount becomes due and is credited to capital: Share Allotment A/c Dr., To Share Capital A/c.
(D) For Receipt of Allotment Money — this matches (II). Cash comes in and the allotment account is cleared: Bank A/c Dr., To Share Allotment A/c.
NCERT (2026-27 edition):
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