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Which entry records receipt of application money?
AShare Capital A/c Dr, To Bank A/c
BShare Allotment A/c Dr, To Bank A/c
CBank A/c Dr, To Share Capital A/c
DBank A/c Dr, To Share Application A/c
Answer & Solution
Correct answer: D. Bank A/c Dr, To Share Application A/c
Cash is debited and the temporary share application account is credited until allotment.
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