passwella.
Menu

WAEC Financial Accounting 1998 Question 34

Question 34

Company Accounts

The double entries for refund of unsuccessful application monies are, debit

  1. A.Application for shares Account, credit Bank Account
  2. B.Bank Account, credit Application for Shares Account
  3. C.Allotment Account, credit Application for Shares Account
  4. D.Allotment Account, credit Bank Account
  5. E.Cash Account, credit Bank Account.
Show the answer and explanation

Answer: A (Application for shares Account, credit Bank Account)

Explanation

Refunding money reduces the application account (debit) and the bank (credit).