When shares are oversubscribed and money returned to unsuccessful applicants, the entry to record such money is to debit
-
A.
application and allotment account and credit unsubscribed shares -
B.
application and allotment account and credit cash -
C.
oversubscribed shares and credit allotment account -
D.
oversubscribed shares and credit allotment account
Correct Answer: Option 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