Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
Where will excess money adjust if a lesser no of shares is allotted to the shareholder than applied by him?
Options:
Returned to shareholder
Adjusted in the bank account
Adjusted in temporary account
Adjusted in allotment money
Correct Answer:
Adjusted in allotment money
Explanation:
In case lesser number of shares have to be allotted, than those applied for the excess application money must be adjusted towards the amount due on allotment from the allottees.