Question : Received share application money towards application & allotment of shares will be credited to which of the following account?
Option 1: Share Application & Allotment A/c
Option 2: Share Application A/c
Option 3: Share Capital A/c
Option 4: None of these
Correct Answer: Share Application & Allotment A/c
Solution : Answer = Share Application & Allotment A/c
The amount received as share application money towards application and allotment of shares will be credited to the Share Application and Allotment Account. This account is used to record the funds received from shareholders during the application and allotment process before they are transferred to the Share Capital Account upon final allotment.
Hence, the correct option is 1.
