When shares are oversubscribed and money returned to unsuccessful applicants, the entry to record such…

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Accounts - Principles of Accounts JAMB 2012

When shares are oversubscribed and money returned to unsuccessful applicants, the entry to record such money is to debit

  • application and allotment account and credit unsubscribed shares
  • application and allotment account and credit cash checkmark
  • oversubscribed shares and credit allotment account
  • oversubscribed shares and credit allotment account

The correct answer is: B

Explanation

You will debit application and allotment account and credit cash because monies that have been collected from the public wil have to be returned 

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