Match List-I with List-II

List-I	List-II
Allotment of Shares	Journal Entry
(A) For Transfer of Application Money	(I) Share Application A/c Dr. To Bank A/c
(B) For Money Refunded on Rejected Application	(II) Bank A/c Dr. To Share Allotment A/c
(C) For Amount Due on Allotment	(III) Share Application A/c Dr. To Share Capital A/c
(D) For Receipt of Allotment Money	(IV) Share Allotment A/c Dr. To Share Capital A/c

Choose the correct answer from the options given below:

To match the transactions with their journal entries, let's understand what each transaction represents:

(A) For Transfer of Application Money

After shares are allotted, the application money received is transferred to Share Capital account. The entry is:

Share Application A/c Dr.

    To Share Capital A/c

This matches with (III).

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(B) For Money Refunded on Rejected Application

When applications are rejected, money is returned to applicants from the bank. The entry is:

Share Application A/c Dr.

    To Bank A/c

This matches with (I).

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(C) For Amount Due on Allotment

When shares are allotted and the amount becomes due from shareholders (but not yet received), the entry is:

Share Allotment A/c Dr.

    To Share Capital A/c

This matches with (IV).

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(D) For Receipt of Allotment Money

When the allotment money is actually received in the bank, the entry is:

Bank A/c Dr.

    To Share Allotment A/c

This matches with (II).

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Final Matching: (A) - (III), (B) - (I), (C) - (IV), (D) - (II)

Correct Answer: Option 1