A combined account for share application and share allotment is opened by the company in some situations.

What is the name of that combined account?

Share Application and Allotment Account

The correct answer is option 4- Share Application and Allotment Account.

A combined account for share application and share allotment is opened by the company in some situations which is called Share Application and Allotment Account.

Sometimes a combined account for share application and share allotment called ‘Share Application and Allotment Account’ is opened in the books of a company. The combined account is based on the reasoning that allotment without application is impossible while application without allotment is meaningless. These two stages of share capital are closely inter-related. When a combined account is maintained, journal entries are recorded in the following manner:
For Receipt of Application and Allotment-
Bank A/c
     To Share Application and Allotment A/c
(Money received on applications for shares @ Rs. _____ per share).

For Transfer of Application Money and Allotment Amount-
Share Application and Allotment A/c
       To Share Capital A/c
(Transfer of application money to Share Capital Account for amount due or allotment of — Share @ Rs. _____ per share)