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JAMB Accounting 2012 Objective — Question 42

Question 42 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2012 Objective paper, with the correct answer and a full explanation.

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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 accountCorrect
  • C. oversubscribed shares and cash account
  • D. oversubscribed shares and credit allotment account

Explanation

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 cash account.

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