Match List-I with List-II List-I List-II (A) For Transfer of Applicat…

The correct answer is Option (2) → (A)-(II), (B)-(III), (C)-(I), (D)-(IV)

Each stage of share allotment moves money between three accounts: Share Application, Share Allotment and Share Capital, with Bank on the cash side. The trick is to ask which account is giving up a balance (credited) and which is receiving it (debited).

(A) For Transfer of Application Money — this matches (II) Share Application A/c Dr. To Share Capital A/c. On allotment, the application money of the allotted shares becomes share capital, so Share Application is closed by a debit and Share Capital credited.

(B) For Money Refunded on Rejected Application — this matches (III) Share Application A/c Dr. To Bank A/c. The money goes back to the applicant, so cash leaves the bank and the application balance is cleared.

(C) For Amount Due on Allotment — this matches (I) Share Allotment A/c Dr. To Share Capital A/c. The amount becomes due from the shareholders, so Share Allotment (a personal account of the shareholders) is debited and Share Capital credited.

(D) For Receipt of Allotment Money — this matches (IV) Bank A/c Dr. To Share Allotment A/c. Cash comes in, and the shareholders’ dues on allotment are cleared.