Multiple choice

Shares issued to promoters of the company, crediting the share capital should be debited to

Dr. ..............?................. Cr. Share Capital

  1. Promoters account

  2. Services account

  3. Formation expenses account

  4. Goodwill account

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Promotors start a company and give their reputation to the business as their services, the company issued the shares to them and recorded as goodwill a/c.