Multiple choice

When a share is issued at its nominal value where par value is payable in installments through cash and no direct record is made in Cash Book and records for Application and allotment are made seperately: Which of the following entry is wrongly recorded in the books?

  1. Bank A/c To Share Application A/c

  2. Share Allotment A/c To Share Capital A/c

  3. Bank A/c Share Allotment A/c

  4. Bank A/c Share Call Capital A/c
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The correct entry is passed when Call Money is received as follows: Bank A/c To Share Call A/c

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