Identify the sequence of journal entries with regard to transfer of shares application money and allotment of shares:
(A) Share Allotment A/c Dr.
To Share Capital A/c
(B) Share Application A/c Dr.
To Share Capital A/c
(C) Bank A/c Dr.
To Share Allotment A/c
(D) Share Application A/c Dr.
To Bank A/c
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (B), (D), (A), (C)
The entries after the application money has been received, in order:
(B) Share Application A/c Dr., To Share Capital A/c — transfer of application money on shares allotted.
(D) Share Application A/c Dr., To Bank A/c — refund on rejected applications.
(A) Share Allotment A/c Dr., To Share Capital A/c — amount due on allotment.
(C) Bank A/c Dr., To Share Allotment A/c — receipt of allotment money.
NCERT (2026-27 edition):
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