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12th Class Accountancy Accounting For Share Capital Question Bank MCQs - Accounting for Share Capital

  • question_answer
    X Ltd. issued 2,500 shares of Rs.10 each credited as fully paid to the promoters for their services rendered to incorporate the company. Journal entry for issue of share to promoter will be:

    A)
    Cash A/c Dr. 25,000  
    To Equity share capital A/c     25,000
     

    B)
    Assets A/c Dr. 25,000  
    To Equity share capital A/c     25,000
     

    C)
    Incorporation cost A/c Dr. 25,000  
    To Equity share capital A/c     25,000
     

    D)
    Goodwill A/c Dr. 25,000  
    To Equity share capital A/c     25,000
     

    Correct Answer: C

    Solution :

    Incorporation cost A/c Dr. 25,000  
    To Equity share capital A/c     25,000
     


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